The Income Tax Law and the legislative and regulatory acts issued for its implementation govern the relationships arising in the field of personal income tax, profit tax, and withholding tax on income.
It sets the rules for the collection and administration of personal income tax for individuals, of profit tax for commercial companies, and of profit tax for natural persons (registered traders) when they are subject to profit tax.
Among other things, the law has detailed the structural composition of the key elements involved in determining income and taxable profit, both in terms of income and expenses.
Clearly, the law specifies the manner of documentation, declaration, and payment related to the tax obligations that are its subject.
The current Income Tax Law, enacted in December 1998, has undergone a series of changes conditioned by the stages of economic development, responding to the fiscal policies of the executive branch as well as the needs of the business community.
Source: General Directorate of Taxes.