Proposed Personal Income Tax Changes
24 October, 2025
The Ministry of Finance has just released an updated draft of the new Personal Income Tax ("PIT") Law.
The proposed changes focus on key areas including:
- expanding the tax base, changing certain tax calculation methods for specific types of incomes, and adjusting income thresholds and rates;
- revising personal deductions for taxpayers and dependents, introducing new deductions, and reducing the number of progressive tax brackets for employment income;
- reforming tax exemptions and reductions;
- addressing inconsistencies in current regulations to improve transparency and ease of implementation.
The new PIT law is currently expected to be introduced mid 2026 with certain specific provisions becoming effective as early as January 2026.
