|Content in English|
|Napisao Ljubiša Lazarević|
|utorak, 24 april 2012 00:00|
Calculator for calculating the tax credit for investments in property, plant, equipment or biological agents is primarily intended for investors. The calculator provides an accurate, clear and systematic review of the income tax deduction for those who make investment in their own fixed assets, and for performing the main activity and the activities recorded in the memorandum of association.
Article 48 of Income Tax Law enables business entities to reduce income tax liability on the grounds that they made certain investments in performing their activity.
The amount of the tax credit is different for small legal entities compared to medium and large legal entities. Small entities are entitled to a tax credit in the amount of 40% of the investment made, while medium and large entities are entitled to a tax credit in the amount of 20% of the investment.
It should be noted that on this basis is not possible to reduce completely the amount of income tax to be paid in the current year. The maximum tax credit that can be used in the year of the investment is 70% of the calculated income tax for small legal entities. For medium and large entities this amounts 50% of the calculated tax.
The unused amount of the tax credit can be transferred to the following years (under the same terms 70% and 50%), maximum to 10 years.
In the case when beside the tax credit from the current year, there is a tax credit from previous years, a tax credit for investments in the current year is applied first and then transferred tax credits in order of investments.
To be entitled to the tax credit certain conditions must be met:
A special convenience about the tax credit granted to encourage investments is given to the legal person who, according to the industry they mainly perform, into the following categories:
01 - agriculture;
Tax credits are granted to these economic associations for all of the industries above mentioned, which can be found in their respective Memorandum of Association, or more closely in the second act which determines the indutry.
The right to a tax credit is awarded to these companies in the amount of 80% of their investment, without any limitation to their yearly tax as calculated in the year of their investment. This also applies to the next 10 years, in which amount of time they may transfer any remaining unused tax credit.
This calculator does not encorporate the last mentioned case of tax credit calculation.
Invester's Calculator – income tax deduction for investments