Parliament approved a revision to the Income Tax Act that cuts the tax from 21% to 15% for companies and sole traders with annual revenues under €100,000. Over two thirds of all firms will enjoy the lower rate and the government expects a revenue outage totaling €43m annually.
MPs also approved an increase in the basic tax deductible from 19.2- to 21-times the subsistence minimum. An average employee or sole trader will save €90 annually in income tax and the state will lose out €150m in revenues. This will impact municipalities, as personal income tax is their source of revenue.