Tax Code – Amendments proposed

On 16 August 2012, the Ministry of Finance published a draft of an Emergency Ordinance amending the Tax Code.

The amendments would enter into force on 1 January 2013, unless otherwise indicated.

The major proposals are summarized below.

Direct taxation

With effect from 1 October 2012, the supplementary deduction in respect of research and development expenses would be increased from 20% to 50%.

Losses of entities that cease to exist as a result of divisions or mergers would b…