Almost 50,000 small and micro companies will pay tax on their annual income, if the government’s proposal to withdraw the tax exemption for companies with an annual income of up to 3 million denars is adopted. This means that even artisans who make a minimum annual income will pay taxes. The amendments to the Law on Profit Tax have already been submitted for discussion in the Parliament. Business owners say that this will close a large number of small companies that are barely surviving the crisis and unfair competition from the gray economy, or some of them will move into the gray zone.
So far, companies with an annual turnover of up to 3 million denars (50,000 euros) were exempt from taxes under Article 32 of the Law on Profit Tax. According to the proposed amendments to the law, this article is deleted.
The experts decided that with these changes the Government will increase the gray economy instead of reducing it.
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