The government has proposed a reduction of the tax on dividend from 7% to 5%, as part of the amendments to the Law On Corporate Income Tax, the Government Press Service announced.

The 10% corporate tax will be in power next year as well. According to the proposed amendments small enterprises (those with net revenues for the preceding year of below 100,000 leva) will not make advance payments. They will pay their corporate tax at one time till March 31 net year. It is expected that nearly 146,000 small enterprises will benefit from this amendment.

Newly established companies will also be relieved from making advance payments. At the moment they have to make a three-month installment for the year of establishment.

The monthly advance installment for April will be reevaluated. According to the law in power at the moment, companies are making monthly advance installments calculated on the basis of their annual profit two years ago, as profit for the preceding year is not yet calculated at the time. The aim is to be able to calculate the advance installment on the basis of profit for the preceding year, which will be more accurate and fair.

The bill also envisages that mobile phones worth more than 500 leva and registered as fixed assets will be subject to tax amortization for a period of two years.

The law-makers are also considering amendments to taxation of gambling activities, lottery, sports scores gambling etc. Under the proposal, hen setting the tax basis for such, to take into account the amount of prizes paid to winners, which will bring figures closer to the actual financial result the game organizers achieve. Also, the tax rate for lotteries will be equaled to the tax rate for sports gambling.