Note on the legal basis, September 2026. This page refers to Law No. 8438 of December 28, 1998, on income tax, which is no longer in effect. It has been replaced by Law No. 29/2023. The content below is preserved for reference, but before you act, verify the current rule.
The Law on Income Tax and the legislative and regulatory acts issued in 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 related to determining taxable income, both income and expenses.
The law clearly specifies the manner of documentation, declaration, and payment related to the tax obligations that are its subject.
The current Income Tax Law, adopted 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.
