1. Tax System of the Czech Republic 2012

2. A brief comparison… economical and political system others… Taxes_at_a_Glance_2011cCZ-UZB.pdf http://maps.google.com/maps?q=Mustaqillik+Maydoni,+Tashkent,+%D0%A2%D0%B0%D1%88%D0%BA%D0%B5%D0%BD%D1%82%D1%81%D0%BA%D0%B0%D1 %8F+%D0%BE%D0%B1%D0%BB%D0%B0%D1%81%D1%82%D1%8C,+Uzbekistan&hl=cs&ie=UTF8&ll=41.31443,69.269003&spn=0.003816,0.008256&sll=41.316433,69.26675&sspn=0.007631,0.016512&t=h&z=18http://maps.google.com/maps?q=Mustaqillik+Maydoni,+Tashkent,+%D0%A2%D0%B0%D1%88%D0%BA%D0%B5%D0%BD%D1%82%D1%81%D0%BA%D0%B0%D1 %8F+%D0%BE%D0%B1%D0%BB%D0%B0%D1%81%D1%82%D1%8C,+Uzbekistan&hl=cs&ie=UTF8&ll=41.31443,69.269003&spn=0.003816,0.008256&sll=41.316433,69.26675&sspn=0.007631,0.016512&t=h&z=18

3. CZECH TAX SYSTEM Income taxes ( Brief discussion of Points of Tax Impact in Circular Flow ) –personal income tax –corporate income tax –social security contributions Consumption taxes –value added tax –excise duties (mineral oils, tobacco, as a residual for example beer, wine, alcohol,) –energy taxes (electricity, solid fuels, natural gas) Property taxes –real property tax, real property transfer tax, inheritance tax, gift tax, road tax Environmental - green, local and administration taxes / fees

4. Czech and Uzbekistan (% of all tax revenues) http://www.mf.gov.uz/en/gos-budjet.html

6. CzechCzech OLDNEW These differences not only reflect 1/social policy choices such as public or private provision of services, e.g. old-age and health risk protection, but also 2/technical factors: some Member States provide social or economic assistance via tax reductions (lower indicator) rather than direct government spending (higher indicator, if not DEBT), OR while social transfers are exempted from taxes (lower) and social contributions in some Member States but not in others (18); both of these choices affect the level of the tax-to-GDP ratios. Taxation of transfers mechanically pushes the tax-to-GDP ratio up, compared to countries that pay transfers on an exempt basis. In addition, countries with a relatively high tax-to-GDP ratio often impose higher taxes on social transfers, perhaps because this is more congruent with pure horizontal equity considerations.

7. Total Taxes (including SSC) as % of GDP can sometimes be tricky… Some differences not only reflect 1/social policy choices such as public or private provision of services, e.g. old-age and health risk protection, but also 2/technical factors: some Member States provide social or economic assistance via tax reductions (lower indicator) rather than direct government spending (higher indicator, if not DEBT), OR while social transfers are exempted from taxes (lower) and social contributions in some Member States but not in others.

8. Member States towards the centre of the EU, namely Belgium, Austria, Italy, and France, all of which had a tax ratio in excess of 40 % in 2009. Neighbouring Germany, Hungary, and the Netherlands are just below this level at 39.7%, 39.5%, and 38.2% of GDP respectively. With the exception of the Nordic Member States the geographically more peripheral countries tend to show lower tax ratios, particularly in Central and Eastern Europe. Cyprus, whose tax ratio had increased rapidly until 2007, witnessed a sharp drop in the last two years in the series, nearly six percentage points, bringing it back down to below the EU average.

9. CZECH TAX SYSTEM Shares of different taxes in the total tax revenue

10. SSC added…

11. New Denmark

12. SSC in CZECH REP. Czech Denmark Czech

13. 15 % in Czech Rep. is a bit tricky, should be higher, circa 22 % Uzbekistan – 22 %

14. 19 % in Czech Rep. Uzbekistan – 9 % 15 % for comm. banks Reduction of tax rate 24 % in 2007 21 % in 2008 20 % in 2009 19 % in 2010 The rate for all withholding taxes is unified at 15 % Uzbekistan – 6, 10, 20 %

15. The tax-to-GDP ratios AND/OR implicit tax rates The tax-to-GDP ratio and the breakdown of tax revenues (% of the total tax burden) into standard categories such as –direct taxes, –indirect taxes and –social contributions provide a first insight into cross-country differences in terms of tax levels and its composition in terms of tax type. Other approach additionally provides a broad classification of taxation in three economic functions – –consumption, –labour and –capital. The implicit tax rates or ITRs are calculated as TAX/potential tax base., i.e. average effective tax burden indicators; unlike simple measures of the tax revenue, these take into account the size of the potential tax base, which often differs substantially from one country to the other. The term 'implicit tax rates' is used in order to distinguish the backward looking approach (we know TAX and BAZE and calculate ITR) from forward looking average effective tax rates calculated (derived) on the basis of the tax code. Other different concept is nominal tax rate (TAX/tax base udjusted)

16. the taxes levied on (employed) labour income, which are usually withheld at source (i.e. personal income tax levied on wages and salaries income plus social contributions), represent the most prominent source of revenue, contributing almost 50 % of overall receipts on average, followed by consumption at roughly one third and then capital at around one fifth.

19. PERSONAL INCOME TAX Tax rate: 15 % (effectively cca 23 % from the gross wage) In force since 2008 Until 2007: four bracket system with tax rates from 12 % to 32 % Applicable to: Salaries and wages, Income from business activities, Income from capital assets, Rental income Others…

21. PERSONAL INCOME TAX History - development of the highest tax rate

22. PERSONAL INCOME TAX The tax base for any employee includes the gross salary increased by the employer’s health and social insurance contributions Self-employed persons are not be able to deduct their social and health insurance from their tax base. Taxed on month basis (12 tax advance payments) and summary (salary roll, clearing) at the end of the year Various tax allowances (per year) - nominal tax reduction = allowance* (tax rate) − mortgage interest (till 12xaver.wage per households) − private pension insurance and life insurance (till 2x0,5aver.wage) − charity (min. 1/24xaverwage till 10 % of tax baze), !!! is not expenditure for tax purposes (example later) Tax credits (nominal tax reduction = tax credit) − basic (1xaverwage) − wastable for dependent partner (1xaverwage) − non-wastable for children (0,5xaverwage per child)

23. Main non-standard tax reliefs Charitable donations allowance: A tax allowance of up to 10 per cent of taxable income is available for donations made to municipalities or legal entities for the financing of social, health, cultural, humanitarian, religious, ecological and sport activities. The minimum limit for donations is the lesser of 2 per cent of taxable income or CZK 1 000. Interest payments: Taxpayers may claim an allowance of up to CZK 300 000 for mortgage interest payments or other interest payments related to the purchase or the improvement of their house. If more than one individual living in the same household apply for this allowance, the sum of their annual deductions is subject to the abovementioned ceiling, i.e. CZK 300 000.

24. Main non-standard tax reliefs Supplementary pension scheme contributions: Taxpayers who are members of a registered supplementary private pension scheme are entitled to deduct the individually paid (i.e. paid by employee) annual contributions to a registered pension scheme reduced by CZK 6 000 from the earned income. The maximum allowance is CZK 12 000 a year. Private life insurance premiums: Taxpayers may claim an allowance of up to CZK 12 000 for premiums paid according to a contract between the taxpayer and an insurance company if the benefit (lump sum or recurrent pension) is paid out 60 months after the signature of the contract and in the year in which the taxpayer reaches the age of 60.

26. CORPORATE INCOME TAX CIT is levied on income from the worldwide operations of Czech tax residents and on Czech-source income of Czech tax non-residents The Czech tax residents - entities with their seat or the place of management in the Czech Republic Tax base is calculated from the accounting profit/loss (according to the Accounting Act and Czech accounting standards) The accounting profit/loss is further adjusted by non- deductible costs, non-taxable revenues etc. The tax period may be a calendar year or fiscal year

27. CORPORATE INCOME TAX Reduction of tax rate –24 % in 2007 –21 % in 2008 –20 % in 2009 –19 % in 2010 The rate for all withholding taxes was unified at 15 % Losses can be carried forward for the 5 following tax periods Extended binding rulings help to reduce administrative burden and uncertainty of firms Investment incentives: tax holidays for up to 5 years (in some cases even 10 years)

28. PIT x CIT adjustments of taxable income slightly differ charity (10 for PIT contra 5 percent for CIT) Research and development allowance (strong measure to reduce tax base)

29. Laffer effect

30. Example - Gifts as an allowance measure… gift 1 to the hospital A = 6000 gift 2 to the hospital B = 3000 gift 3 to the secondary school A= 3000 gift 4 to the secondary school A= 300 !!!! RandD alowance = 5000 Profit = 100000 PIT for selfemployer tax baze = –100000 + all gifts = 112000 –112000 is caled tax baze –MINUS RandD –MINUS gifts (max 10% of 112000, so only 11200, not 12000) adjusted tax baze = –112000-5000 -11200= –958000 is adjusted tax baze CIT is disadvataged usually tax baze = –100000 + all gifts = 112000 –MINUS RandD –107000 = intermediate tax baze –MINUS all gifts (max 5% of intermediate tax baze, 5350) adjusted tax baze = –112000-5000-5350 = –101700 is adjusted tax baze

31. SOCIAL SECURITY CONTRIBUTIONS Type of insurance Paid by employer (%) Paid by employee (%) Total (%) Social insurance 25.06.56.531.5 Health insurance 9.04.513.5 Total34.011.045.0

32. VALUE ADDED TAX A general, broadly based consumption tax assessed on the value added to goods and services Taxable person: an individual or corporation in case of economic activity Obligatory registration x voluntary registration Tax rates: –20 % standard rate, –10 % reduced rate was increased to 14 % in 2012 (foodstuffs, residential construction, accommodation and transport) –The reduced rate was increased from 5 % to 9 % in 2008 Since 2010 the both rates have been increased by 1 percentage point (austerity package)

33. VAT reduced rate and base indicator VAT = t-statutory * tax base adjusted by tax code VAT = ITRvat * full final consumption we derive so called indicator of VAT reduced rate and base as standard VAT rate - ITRvat

35. VAT reduced rate and base indicator in CZECH REP low and will be lower (expectations based on elimination of reduced rate) VAT tax burden is going to be higher

36. VALUE ADDED TAX Exemption with the right of deduction Exemption without the right of deduction Fiscal period - calendar month or calendar quarter

37. EXCISES Fully harmonised with EU directives Mineral oils –Petrol – 12 840 CZK (505 EUR) /1 000 l –Diesel – 10 950 CZK (431 EUR) /1 000 l –Heating oils – heavy – 472 CZK (19 EUR) /t –LPG – 3 933 CZK (155 EUR) /t Beer –5 rates – acording to amount of production – from 32 CZK (1,26 EUR) to 16 CZK (0,63 EUR) /hl/degree Plato Wine –just sparkling 2 340 CZK (92 EUR) /hl –still wine not taxed

38. EXCISES Alcohol –2 rates – 28 500 CZK (1121 EUR) /hl etanol; 14 300 CZK (563 EUR) /hl etanol –The lower one – ethyl alcohol produced by fruit growers´ distilleries Tobacco products –Cigarettes – minimum tax rate – 2,01 CZK (0,08 EUR) /item –Tobacco – 1 340 CZK (53 EUR) /kg –Cigars and cigarillos – 1,15 CZK (0,05 EUR) /item Environmental (green or energy) –Coal – 8,50 CZK (0,33 EUR) /GJ gross caloric value –Gas – the basic rate – 30,60 CZK (1,2 EUR) /MWh gross caloric value –Electricity – 28,30 CZK (1,11 EUR) /MWh –in force since 2008 All excises rates except wine and environmental have been increased since 2010 (austerity package)

39. PROPERTY TAXES Real property tax –paid annualy from land buildings –Farm land can be exempt from the real estate tax –Municipalities are allowed to set the local coefficients (1 to 5) which determine the rate of real estate tax imposed on buildings Since 2010 most of the property rates have been increased to double (austerity package)

40. PROPERTY TAXES Inheritance and gift tax − only between non-relatives − i.e. all inheritances and gifts within the family and other relatives are exepmt Real property transfer tax − tax rate of 3 % of the value

41. Road tax is payable on vehicles registered and operated for business purposes tax rates are (year period) –1,200 - 4,200 CZK (47 – 165 EUR) for passenger cars (according to engine size for passenger cars) –1,800 - 50,400 CZK (71 – 1983 EUR) for trucks (according to weight and number of axles). Some vehicles with an electric, hybrid engine or use LPG, CNG as a fuel are exempt from the tax (green tax policy issue). Foreseen changes in the future: –exemption of passenger cars (national reasons), –increase of the tax rate for trucks (EU reasons).

42. TAX REVENUE SHARING PIT, CIT, VAT among central, regional and local level − central government: 70 % − regions: 9 % − municipalities: 21 % Real estate tax goes to municipalities All other taxes go to the state budget or other central government‘s funds

43. PACKAGE OF AUSTERITY MEASURES Has been in force since 2010 Purpose – to reduce deficit of public finance Contains rate increase in VAT (19 to 20, 9 to 10), excises, real property tax and PIT (lower expense allowances for some minor kind of enterpreneurs – agricultural and handicraft activities 80%, other minor activities 60 % and 40 %)

44. Progressiveness of the VAT and excises in the Czech Republic

45. The VAT and excises in the Czech Republic Global tax mix Social Security Contribution - 43 % PIT – 12 % CIT – 13 % VAT – 23 % Excises – 7 %

46. * breakpoint 1. 5. 2004

47. Two ways of distributional tax analysis All distributional analyses are based on measurement of impact on the poor and on the rich subjects (i.e. subjects on different part of well-being scales). So the crucial question is: what should be selected as appropriate measure of well-being (of household). annual framework –Well-being = f (annual income) –Theoretically not so appropriate –Easily measurable (appr. 90 % of distributional analyses used this approach) lifetime framework –Well-being = f (lifetime income) –Theoretically more appropriate because the lifetime incidence approach tries to eliminate temporary fluctuations in income

48. Measures of lifetime income Well-being = f(lifetime income) Estimation of lifetime income is the most exciting and challenging issue in up to date distributional research. Lifetime income can be measured (see Slintakova (2006); Metcalf (1994)) as: –the present discounted value of earned income plus bequests (gifts) received –the present discounted value of consumption plus bequests made used in this analysis.

49. Modified lifetime income Due to the lack of appropriate information we had to modified definition of lifetime income. We measured lifetime income as: Current consumption (money expenditures PLUS natural consumption MINUS social insurance) –Bequests were ignored (Metcalf (1994) supported this exclusion)

50. Tax burden calculation choose the average (typical for the selected part of income scale) households and calculate their tax burden calculate the burden for all (and every) individual households, it means to calculate relevant tax burden for every households in the survey, and then study the differences in tax burdens. –We used microsimulation model to calculate individual tax burdens

51. Advantages of microsimulation model analyse not only the averages for the ex-ante defined (social) groups of households, but also its variability within these groups identify unusual behaviour of certain households or groups, which can otherwise be hidden (some kind of outliers) try to find other, not so obvious relevant variables determining the taxation of households use the impact of taxation itself as a classification variable (and study the characteristics of the groups with lowest/highest tax rates on expenditure)

52. Microsimulation model Where SCIni means money expenditures on a statistical consumption item n in year i tn (in %) is a tax rate assigned to the statistical consumption item; the base which is used for the tax liability calculation is in fact paid prices of goods or services including the VAT so that the tax rate was converted accordingly.

53. Example of statistical consumption item for n = 01.1.1.X Classification of expenditures in SRU (Czech Household budget survey (HBS))

54. The aim of empirical analysis to compare the distribution impact of the VAT and excises under both well-being measures. The presupposed result that the consumption taxation can be considered as progressive under lifetime income framework can be interesting for the policy makers.

55. Results of VAT analysis Annual framework (annual income) Lifetime income (annual consumption)

56. Results of excise analysis Annual framework (annual income) Lifetime income (annual consumption)

57. Conclusions design of the VAT is generally progressive, but the propensity to consumption outweighs this design effect and causes the VAT to be regressive under the annual income framework (on the contrary to lifetime approach) design of excises is generally proportional and so excises seem to be rather regressive or proportional then progressive under both the frameworks

58. Conclusions 2 some level of progressivity of the Czech VAT is caused especially by application of the reduced rate on selected goods and services (especially necessities, i.e. goods expenditures on which represent higher portion of total consumption for lower income households) Czech VAT looks progressive if we use the consumption expenditure for allocation of households to quintiles (and for calculation of the relative tax burden). On the contrary the tax is regressive under the annual income framework.

59. Incidence Analysis of Pension Security in the Czech Republic

60. Pension security scheme - annual view is a compulsory public insurance scheme it is a „paygo“ system: = today employees and self-employed contribute to the fund = yesterday employees and self-employed = today retirees draw pensions

61. Individual lifetime participation when works, an individual pays a share of his earnings to the fund when retired, an individual receives a pension ↓ what is his net benefit over the life? = lifetime pension – lifetime tax how the pension security changes lifetime income inequality?

62. Data for the lifetime incidence analysis panel data for a long period are necessary absence of the real panel data in CR → modelling of pseudo panel data Information System on Average Earnings → coverage of 1,3 mil. employees → data on income and various personal characteristics → data on their employers

63. Model of the lifetime income fictional individual = group of real individuals of different ages (when they start – when they stop working) lifetime income of fictional individual = = sequence of average incomes of real individuals lifetime income = earnings from employment

64. Lifetime income of fictional individual

65. Modelling of data: Assumptions 1. sufficient number of real individuals of different age but the same characteristics related to income 2. minimal variance in incomes in age groups 3. stability of individual´s income profile over time

66. Creation of fictional individuals One-factor ANOVA and regression analysis → characteristics with effect on income: gender, education, location, occupation excluded from the sample: - part-time employees - working in the country´s capital - working in „financial services“ industry

67. Lifetime profile - example I.

68. Lifetime profile – examle II.

69. resulting 331 fictional persons = men and women of different education and occupation working outside the capital + working from the end of schoolling (18-23) until the legal age of retirement (62 x 59) without any break (illness, unemployment, child care etc.) with the same life expectancy (17 x 23)

70. Estimate of lifetime tax 2006 law (2006 is the last working year) present value of lifetime tax = employee´s rate = 6,5 % employer´s rate = 21,5 %

72. Estimate of lifetime pension 2007 law (2007 is the first retirement year) present value of lifetime pension = [(earnings x rate) + lump sum] x months „months“ for women = 23 x 12 „months“ for men = 17 x 12

74. Updating of the past earnings reality: indexation by a growth of wages: earnings 2001 x index index = avrg wage 2006 /avrg wage 2001 simulation: earnings 2001 = earnings 2006 of 56-years old

75. Results 1.distribution of net benefits 2.distribution of rates of return welfare measure for ranking of individuals = = lifetime average earnings/national average wage

76. Pension – Tax (tax rate = 6,5 %)

77. Pension/Tax (tax rate = 6,5 %)

78. Pension/Tax (tax rate = 28 %)

79. Conclusions I. considering the 6,5 % rate all the fictional individuals benefit more than they paid however, considering the 28 % rate especially lower-income women benefit rate of return decreases with well-being income is redistributed from higher-income to lower-income individuals or from men to women

80. Conclusions II. the pension security reduces the inequality of lifetime income lower-income individuals are better-off ↑ regressive pension formula later earnings are relevant in calculation shape of lifelong earnings function

81. Thank You for Your Attention

82. end of presentation

84. Terminology – E27 … http://europa.eu/rapid/pressReleasesActio n.do?reference=STAT/11/100&format=HT ML&aged=0&language=en&guiLanguage= en

89. Taxation of SME in the Czech Republic

93. Taxes with the hardest impact on enterprises Corporate income tax limited and incorporated companies Personal income tax public company limited, unincorporated enterprisers, special limited partnership Value added tax

94. Tax support of SME The tax system of the Czech Republic does not support SME directly The support of SME through subsidies, bank credits, loans (guarantee by state) etc.

95. Corporate income tax CIT CIT is levied on income from the worldwide operations of Czech tax residents and on Czech-source income of Czech tax non-residents the Czech tax residents - entities with their seat or the place of management in the Czech Republic tax base is calculated from the accounting profit/loss (according to the Accounting Act and Czech accounting standards) the accounting profit/loss is further adjusted by non- deductible costs, non-taxable revenues etc. the tax period may be a calendar year or fiscal year

96. Corporate income tax CIT Reducing of the tax rate in time - 1993: 45 % - 2006: 24 % - 2009: 20 % - 2010: 19 % losses can be carried forward for the 5 following tax periods and it is up to the taxpayer when he actually utilises them against his profits within this 5-year period

97. Corporate income tax CIT The liability to pay Advance tax – based on the amount from the last tax declaration Small enterprises usually do not pay tax in advance Last tax declaration (LTD)Advance tax (AT)Nr. of AT per year Up to 30 000 CZK-- 30 000 CZK up to 150 000 CZK40% LTD2 More than 150 000 CZK25% LTD4

98. Personal income tax PIT Is levied on the all incomes of self-employed persons and employees Single tax rate 15 % (effectively about 23 %) History – four bracket system with tax rates from 12 % to 32 % The minimum tax base for self–employed persons was abolished in 2008

99. Personal income tax PIT Applicable to Salaries and wages Income from business activities Income form capital assets Rental income Other income The liability to pay Advance tax – based on the amount from the last tax declaration (the same conditions as for advance tax of CIT)

100. Personal income tax PIT The self-employed persons have liability to conduct accounting Small enterprisers have opporunity to conduct so called „Tax evidence“ – simplified accounting The Tax evidence contains only information (records) about incomes and expenditures, amount of assets, amount of debts

101. Personal income tax PIT Another opportunity how to show expenditures is to approve expenditures as a percentage part of income (percentage lumps set by the law - differently for each business activities) Reducing of administration burden Recording of expenditures is aboslished in this case The amounts of lumps differ from 60 % up to 80 %

102. Value added tax VAT A general, broadly based consumption tax assessed on the value added to goods and services Taxable person – an individual or corporation in case of economic activity Two rates Standard rate: 19 % Reduced rate: 9 % (foodstuff, medicaments, books, dwelling etc.)

103. Value added tax VAT Small enterprisers with turnover up to 1 mil. CZK do not need to registrate to VAT In this case enterprisers do not have right to deduction of VAT Obligatory registration vs voluntary registration to VAT

104. Value added tax VAT Small enterprisers with turnover up to 1 mil. – obligatory registration to VAT Tax period Quarter period for small enterprises with turnover up to 10 mil. CZK Month period for bigger enterprises

105. National anti-crisis plan In 2009, in connection with current financial crisis any advance taxes for all small enterprisers with up to 5 employees were abolished by the Ministry of Finance

106. Future outlook - ICP Project of Integrated collecting place – for all public incomes ICP will collect incomes from Taxes Custom duties Social insurance Medical insurance

107. Integrated collecting place (ICP) Consolidation of institutions collecting different incomes to only one institution Improvement in client access and reducing of administrative burden for taxpayers and for tax administrator also Unified tax and insurance base One declaration, one payment, one control

108. New tax measures in 2010 In force since 2010 To reduce deficit of public finance Increase in VAT rates, excise rates, PIT and real estate tax rates Effort to reduce the impact on SME

109. TAX LEGISLATIVE PROCEDURE OF PARLIAMENT Czech Parliament has two chambers Chamber of Deputies (200 members) –elections every four years Senate (81 members) –elections of one third (27) of Senators every two years –thus, every Senator serves six years

110. TAX LEGISLATIVE PROCEDURE OF PARLIAMENT Legislative process usually begins in the government It is the same for all kinds of legislation Act on the state budget - specific procedure

111. TAX LEGISLATIVE PROCEDURE OF PARLIAMENT Government –preparation of the new law starts within the responsible ministry –internal comments tax administration (central and regional levels) takes part in the internal comments –external comments other ministries other stakeholders – Highest Court, Czech Central Bank, trade unions, employer unions, various associations etc. sometimes general public

112. TAX LEGISLATIVE PROCEDURE OF PARLIAMENT Government cont‘d –Legislative Council of Government –governmental approval if there are disagreements among various ministries and/or other stakeholders, governemnt has to decide –the law is then presented to the Parliament

113. DRAFTING AND REVIEWING OF TAX LAW IN PARLIAMENT Chamber of Deputies –The rules of procedure of the Chamber of Deputies are given by law –Every new law has to go through the three readings –1st reading general debate may be rejected or returned to the government for reworking steering Comittee specifies a rapporteur the new law is introduced by the sponsoring ministry committees to deal with the particular law are assigned tax legislation always assigned to Budgetary Comittee more committees may be assigned to one law

114. DRAFTING AND REVIEWING OF TAX LAW IN PARLIAMENT Chamber of Deputies cont‘d –Work in the committees committee shall consider the proposed law pass a resolution with recommendations present it to the whole Chamber there may be an opposing reports if at least one-fifth of all members agree other committees or all individual Deputies may state opinion –2nd reading more specific debate follows committees‘ recommendation discussed amendments may be presented

115. DRAFTING AND REVIEWING OF TAX LAW IN PARLIAMENT Chamber of Deputies cont‘d –3rd reading law can be rejected if not, amendments presented durign the second reading are voted after that there is a final vote on approval of the law –the law is then submitted to the Senate

116. TAX LEGISLATIVE PROCEDURE OF PARLIAMENT Senate –30 days to express their view –they can pass or defeat the law or propose an amendment if it is passed it is sent to the President of the Republic if the law is defeated, Chamber of Deputies gets a second vote, they can outvote the Senate‘s rejection if amendments are proposed, Chamber of Deputies has to vote to agree with them

119. Blanka Marzuki

120. TAX TO GDP RATIO Total tax revenue as a percentage of GDP

121. TAX ADMINISTRATION 199 tax offices 8 regional financial directorates Ministry of Finance − Central Financial and Tax Directorate − part of Ministry of Finance to 2010 – since 2011 new independent agency General Directorate of Finance

122. TAX ADMINISTRATION Other agencies collecting public revenues − customs administration − social security administration − health insurance companies