Evidence: The “traps” that increase taxes – What you should pay attention to

Living expenses presumptions (“tekmiria”) continue to be a critical factor in determining taxable income, often leading to higher taxation than the income actually declared.

Taxpayers may be taxed based on deemed income when objective living expenses (such as residences, private vehicles, boats, etc.) exceed their actual income.

At the same time, special attention should also be given to asset acquisition presumptions, including:

• purchase of real estate
• purchase of vehicles
• establishment or increase of participation in businesses
• purchase of shares and bonds
• other significant asset acquisition expenses

These amounts are taken into account as additional expenses and may significantly increase deemed taxable income.

In cases where discrepancies arise, taxpayers may cover presumptions through the use of capital accumulated in previous years or through other lawful sources of funding.

The accurate reporting of financial information in tax declarations is essential in order to avoid unjustified tax burdens.