Individuals’ Deductions

DetailsRate %
Expenses of rented property20% of the rents
Interest paid in respect of rented buildings100%
Subscriptions to unions or professional associations100%
Donations to approved charitable institutions, supported by receipts100%
Social insurance contributions, life insurance premiums and contributions to approved pension funds or medical fundsUp 1/6 of taxable income before the deduction of these allowances

The life insurance should be taken on the taxpayer’s life and not on his/her spouse’s. The allowance granted for insuring the life of the spouse is still valid for policies effected before 1 January 2003.

The annual premiums are restricted to 7% of the insured amount.

In the case of cancellation of a life insurance policy within 6 years from the day of its issue, a percentage of the premiums, which were previously allowed, is taxable as follows:

- Cancellation within 3 years

- Cancellation from 4 to 6 years