Major changes to corporate and individual taxation considered

It has been reported that the Government submitted to the lower chamber of the Parliament an amendment to the Income Tax Law. If adopted, the amendment will introduce major changes to corporate and individual taxation, which are summarized below. The changes would generally apply from 1 January 2009.

Corporate taxation

(a) Thin capitalization. As part of the 2008 income tax reform, the scope of the thin capitalization rules was extended to cr…