Thursday, January 03, 2008

This will annoy the tax harmonisers

Cripes, I need to get posted to Bulgaria which this week has introduced a 10% flat rate on its income tax.

From January 1 2008, income of physical persons in Bulgaria will be taxed at a flat tax rate of 10 per cent, Parliament decided on December 17, when it accepted in second reading changes to the Law on taxation of income for physical persons.

Income from life-insurance contracts after the end of the contracts, would be taxed at 7 per cent, Dnevnik dialy said.

Income taxes on dividend
and liquidation of shares will be five per cent in 2008.

If nothing else this will cause further headaches in Brussels where the rise of tax harmonistaion up the EU's agenda continues in its inexorable fashion.

Post Script
OK so a Swiss Canton has trumped that with a 1.8% rate - but you would have to live in Obwalden which has a population of 33,755 and is, dare I say it quite quiet.

Now tell me why is it that the idea of a flat tax is so scary in the UK?


Mike Wood said...

Although the Bulgarian system is a single rate of income tax rather than a flat tax as it is definitely not commodity or time neutral and the number of deductables would make Steve Forbes blush.
Still wouldn't mind the tax cut though.

Daphne Wayne-Bough said...

Cripes, Eliab, are you a chum of Boris and Spliffy?

Pam said...

"Income taxes on dividend and liquidation of shares will be five per cent in 2008." That will happen only when people pay the taxes.

Terrapod said...

"Why is the idea of a flat tax so scarey?" Simple, it takes powe away from the politican elites, and we just can't have that, can we? And yes, I am being sarcastic.