the local business tax

The rates do not include a turnover-based local business tax. Local governments are entitled to levy a
local business tax on corporations in their jurisdiction, which is generally levied on the net sales revenue
less the revised total sum of the acquisition costs of goods sold and the value of mediated services,
subcontractor fees, material costs and costs directly related to R&D activities. The maximum rate is 2 %.
Some local governments grant exemptions for small businesses.
The rates do not include the innovation tax as well. This tax is levied on the same basis as the local
business tax. The innovation tax rate was 0.2 % in 2004, 0.25 % in 2005, and is 0.3 % from 2006. Small
and micro enterprises are exempted from this tax.
As from 2007 credit institutions are obliged to pay 5 % surtax on interest income from loans
associated with state subsidies. This tax is excluded from the table.
As from 2009 corporations supplying energy products are obliged to pay a surtax of 8 % on the basis
of (adjusted) profit before taxation. As of 1 January 2013 the rate of this surtax is 31%. This tax is
excluded from the table.
In 2005 and 2006 credit institutions and financial enterprises were obliged to pay a special tax on their
interest income (tax rate was 6 %) or on the profit before corporate income tax (tax rate was 8 %). This tax
is excluded from the table.
In the period of 1 September 2006-31 December 2009, taxpayers were obliged to pay a surtax of 4 %
on the basis of (adjusted) profit before taxation.
As from September 2010, financial corporations are obliged to pay an extra levy. Different rules have
been applicable to institutions engaged in different activities.
A temporary sectoral crisis tax was levied in years 2010-12 the energy, telecommunications and
consumer goods retail sectors. The crisis tax was levied on the net sales turnover realized by corporations
in the specific taxable sectors.