The Ministry of Finance proposed a reduction in dividend tax by 2 per cent, from 7 to 5 per cent, Pari daily said. There would be a change in the way to estimate the taxable income in case of sales or the exchange of shares or stocks received through non-pecuniary payments.

Payment of corporate tax would become more evenly distributed throughout the year. There would be changes in the Corporate Income Taxation Law. Currently the boom in receipts was at the end of March when the annual accountingtakes place, while the advances paid during the year for the past three years remained almost unaltered.

Small companies with less than 100 000 leva turnover over the past year would be exempt from advance payments. This would ease tax payments and administration on 146 000 small companies.

The lost long term assets would be recognised as tax items at the moment of being lost. The requirement to stop tax redemptions when an asset is not used in the company activities for more than 3 months was abolished. Interests, behind which a distribution of dividends was hidden, would be treated as a hidden distribution of profit.