The Budget Law came into effect since 1 January 2018 after being published into the Gazette on 29th December 2017. The following regulations have been imposed in the section of direct tax in the Budget Law:
- Electronic submission of tax returns being postponed.
- Reduction in the interest expense deduction.
- Introduction on new taxation on dividends and capital gains on qualifying shares.
- Amendments of defining of permanent establishment and the taxation of dividends arising from a tax haven.
- Extensions of the step-up regime for the costs of land and unlisted shares as well as to equity interests held in foreign companies.
- Complete deduction on the cost of seasonal workers for IRAP purposes
- Extension of the extra depreciation/amortization of specific tangible/intangible assets.
- New web tax on digital services.
- IRES rate and deduction of interest expenses for SIM investment companies.
