Taxes Levied on Individuals: PIT, Single Tax for Individual Entrepreneurs, and Property and Land Taxation
Personal income tax
The standard PIT rate is 13 percent. Understand the tax base (income from employment, civil contracts, property sales, and foreign sources), the tax agent's withholding duty, and the annual declaration obligation for certain income. Know the standard, social, and property deductions and their limits, and the increased rates that apply to certain high income or specific income types. Traps: whether an employer benefit is taxable, the treatment of material assistance, and the timing of withholding.
Individual entrepreneurs
The single tax is a simplified regime where the entrepreneur pays a fixed amount based on the type of activity and region, replacing PIT on that activity. Understand which activities are eligible, the procedure for switching, and the obligation to keep records. A frequent trap is assuming the single tax covers all income - it applies only to the declared activity, and other income is taxed separately.
Property and land taxation of individuals
Individuals pay property tax on residential buildings, apartments, and garages based on calculated value, with reliefs and exemptions (e.g., for certain categories of citizens and for primary housing within limits). Land tax for individuals is assessed by the tax authority on the basis of cadastral value and land purpose. Traps: distinguishing the exemption for one's only dwelling from investment property, and the interaction of local authority rate adjustments.
Worked example
An individual sells an apartment owned for less than five years: the gain is generally taxable, but an exemption may apply for a sole dwelling. A candidate must check the holding period, the number of dwellings, and whether the sale is to a related party before concluding the tax is due.
Rule of thumb
For individuals, first identify the income type, then the applicable deduction, then whether a declaration is required.