The new Tax Code # 99-IV as of 10.12.2008 inure on January 1, 2009.

Below there are our brief comments on some provisions of the new Tax Code:

1. Corporate Income Tax

For corporate income tax purposes the period, during which losses shall be carried over to be applied against taxable income of subsequent tax periods, has been extended from 3 to 10 years.

The corporate income tax rate is 20% (article 147).

2. Value Added Tax

From January 1, 2009 the VAT rate shall be equal to 12% and shall be applied to the amount of taxable turnover and taxable import (article 268).

3. Social Tax

From January 1, 2009 the common rate of social tax of 11% shall be applied instead of former descending tax scale (article 358).

4. Property Tax

From January 1, 2009 movable property shall be excluded from the tax base (article 396).