Changes in the Taxation of Private Use of Company Assets
Amendments to the Corporate Income Tax Act (“CITA”) and the Personal Income Tax Act (“PITA”) were published in the State Gazette on 27 September 2016, and enter into force retroactively from 1 January 2016.
The amendments introduce a new 10% one-off tax on employers’ expenses in-kind, relating to the private use of company assets such as immovable property, vehicles and other. The new rules are an alternative of taxing those expenses as income in-kind (under the PITA) of the individuals benefiting from the private use.
You can read more in the newsletter attached.