EY Tax Guide 2018

Expenses with invoices Foreign tax relief Retirement-Savings Plans
• €15% of the IVA amount incurred with
certain expenses – such as, car as
well as motorbikes maintenance and
repair expenses, accommodation and
restaurant expenses, hair dress and
beauty expenses, veterinary expenses
–with a cap €250.00. The percentage is
100% for VAT related with monthly public
transportation tickets.
• Foreign taxes – limited as per an
applicable double tax treaty – can be
credit up to the portion of the income
tax liability derived from the net foreign
source income, which may be carried
forward for 5 years.
Additional to Municipal
Property Tax
• Creditable against the income tax
liability up to the portion derived from
rental income subject to such tax.
• 20% of the amounts applied, with a cap
of (i) €400.00 by taxpayer with less than
35 years old (ii) €350.00 by taxpayer
between 35 and 50 years old or (iii)
€300.00 by taxpayer with more than 50
years old.
Capitalization public regime
• 20% of the amounts applied, with a cap
of €350.00 by taxpayer with more than
35 years old and €400.00 by taxpayer
with less than 35 years old.
8 Tax Guide 2018