The so-called Packet 2000 introduced by the Minister of Finance should introduce the following changes to taxation in 1997:
- personal income tax rates are to be reduced to 20%, 31%, 43%;
- the corporate income tax rate is to be reduced to 38% (this will gradually be decreased to 32% by the year 2000).
However, not all the proposed changes are so positive - certain deductions may not be allowed next year, among them:
- training and professional improvement will not be tax deductible for individual taxpayers;
- expenses incurred on purchasing shares and bonds from the State Treasury will not be deductible;
- donations to individuals will not be tax deductible.
This information was correct as of 11 September 1997.