The government wants to increase investment capabilities in high unemployment municipalities

The government wants to increase investment capabilities in municipalities with high unemployment, giving up the criterion of the commune's wealth as a condition for using preferential depreciation by micro, small and medium -sized companies – according to the draft amendment to the Act, which was included in the program of Wednesday's government meeting.

On Wednesday, the Council of Ministers is to deal with the bill amending the Act on personal income tax and the Corporate Income Tax Act.

It was explained that the purpose of the project is to simplify tax regulations regarding accelerated depreciation. “Introduction of simplification will positively affect greater investment possibilities in municipalities with high unemployment,” it was noted.

It was noted that, according to the current wording of art. 22j para. 7 of the Act of 26 July 1991 on personal income tax and Art. 16J para. 7 of the Act of February 15, 1992 on corporate income tax, taxpayers who are micro, small or medium-sized entrepreneurs may apply individual depreciation rates for fixed assets produced on their own (buildings and buildings-groups 1 and 2 of the classification of fixed assets), provided that these funds are located in a commune that meets two criteria. It is about municipalities located in a poviat or city with a poviat rights, in which the average unemployment rate is at least 120 percent. average unemployment rate in the country. The second criterion is the individual indicator of the commune's wealth (or city with poviat rights), which is to be lower than 100 percent. indicator of wealth of all municipalities (cities with poviat rights).

The proposed change will cause that the commune's wealth will cease to be a condition for using preferential depreciation. However, a condition will be left to the average unemployment rate. (PAP)

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