Annex

TABLE OF TARIFFS

I. PROGRESSIVE INCOME-TAX

A bridged Tariff.1

^note                                                

Amount of income (In lats)	Amount of tax (In lats)	Approximate percentage2 of tax in relation to income
2,000	58.30	3
3,000	135.80	4.5
4,000	219.60	5.5
5,000	309.70	6
10,000	854	8.5
15,000	1,506	10
20,000	2,206	11
25,000	2,958	12
30,000	3,758	12.5
35,000	4,610	13
40,000	5,510	13.5
45,000	6,462	14.5
50,000	7,462	15
60,000	9,614	16
70,000	11,966	17
80,000	14,518	18
90,000	17,270	19
100,000	20,222	20
110,000	23,324	21
120,000	26,524	22
130,000	29,826	23
140,000	33,226	24
150,000	36,692	24.5

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II. TAX ON INCOME FROM CAPITAL

Tax on income from capital proper : 5 per cent of the income.

Tax on interest debited on current accounts and overdrafts by public bodies and banking institutions : 0.396 per cent of the interest.

III. TAX ON INCOME FROM URBAN REAL ESTATE

A percentage of 1½ of the rental value.

IV. TAX ON INCOME FROM RURAL REAL ESTATE

A percentage of 1½ of the cadastral income or, in the absence of a cadastre, of the rental value of the property.

V. TAXES ON BUSINESS AND INDUSTRY

A. Patente Tax

1. Commercial Enterprises

           

Category of the taxpayer	Amount of tax (In lats)
1st category (turnover in excess of 200,000 lats)	300
2nd category (turnover between 100,000 and 200,000 lats)	150
3rd category (turnover between 50,000 and 100,000 lats)	75
4th category (turnover between 10,000 and 50,000 lats)	30
5th category (turnover not exceeding 10,000 lats)	5

2. Industrial Enterprises

             

Category of the taxpayer	Amount of tax (In lats)
1st category (turnover in excess of 500,000 lats)	600
2nd category (turnover between 200,000 and 500,000 lats)	300
3rd category (turnover between 100,000 and 200,000 lats)	150
4th category (turnover between 50,000 and 100,000 lats)	75
5th category (turnover between 10,000 and 50,000 lats)	30
6th category (turnover between 5,000 and 10,000 lats)	5

3. Banking Insurance Institutions

             

Category of the taxpayer	Amount of tax (In lats)
1st category (statutory capital in excess of 1,000,000 lats)	600
2nd category (statutory capital between 500,000 and 1,000,000 lats)	300
3rd category (statutory capital between 200,000 and 500,000 lats)	150
4th category (statutory capital between 50,000 and 200,000 lats)	75
5th category (statutory capital between 10,000 and 50,000 lats)	30
6th category (statutory capital not exceeding 10,000 lats)	5

B. Tax on Profits

       

Amounts of profit (In lats)	Tax applicable to the fraction of profits included between the two figures of the 1st column (Percentage)1	Amount of tax corresponding to the 2nd figure of the 1st column (In lats)1
Up to 2,000	5	—
Between 2,000 and 5,000	7	350
Between 5,000 and 8,000	9	720
Between 8,000 and 11,000	11	1,215
Between 11,000 and 15,000	13	1,950
Over 15,000	15	—

^note

Special Provisions applicable to Enterprises subject to the Rules of Public Accountancy.

If the yield is less than 3 per cent of the statutory capital, the tax on profits is not payable; the only tax which is applicable is the special tax on capital at the rate of ¼ per cent.

If the yield exceeds 3 per cent of the statutory capital, the tax on profits is calculated according to the table given below and the special tax on capital is assessed at the rate of ½ per cent.

                                     

Percentage of the yield in relation to the statutory capital	Percentage of the tax on profits applicable to the total profits
3.01	7.5
4	8.07
5	8.64
6	9.21
7	9.80
8	10.36
9	10.93
10	11.50
11	12.09
12	12.66
13	13.23
14	13.80
15	14.38
16	14.95
17	15.52
18	16.24
19	16.68
20	17.25

If the net profits exceed 20 per cent of the statutory capital, the rate of tax amounts to 17.25 per cent of the total profits plus 0.75 per cent for the fraction of profits in excess of 20 per cent.