On 10 September 2018, the House of Representatives approved the Tax Reform for Attracting Better and Higher Quality Opportunities (Trabaho) bill 8083 (the Bill). Under the bill, the corporate tax rate will be gradually reduced by 2% every 2 years from 2021 until it reaches 20% in 2029. The current corporate tax rate is 30%. The bill aims to reduce the current corporate income tax rate by 30 percent per two years, with the following schedule: 28 percent in 2021; 26 percent in 2023; 24 percent in 2025; 22 percent in 2027; and 20 percent in 2029.
The priority measure aims to boost investment by lowering the corporate tax rate from 30 percent to 20 percent and modernizing investment tax incentives to improve fairness, improve competitiveness, reduce tax defaults and increase public finance sustainability.
