ABSTRACT

This chapter concerns mainly capital and income taxes, which are payable to the government and to the municipalities. The taxation laws-dating from 1911-are practically alike for town and rural municipalities. In conjunction with assessment and computation of local taxes, the municipal bodies assess and compute government capital taxes and income taxes. Income as defined by the taxation laws is very comprehensive. Capital and income taxes are not considered expenses for achieving the income and, thus, are not deductible from the income. This special tax was introduced in 1921, when payment of government capital tax on shares and income-tax on dividends was transferred from the company to the shareholders, as, otherwise, shareholders would not be fully taxed according to their ability to pay taxes.