The Council of Ministers issued letter No. 252 dated February 27, 2023 to determine tax incentives to educational institutions.
Public and private educational institutions are exempt from income tax, prepayment of income tax, minimum tax, value added tax, withholding tax on interest and dividends from 2024 to 2028. Educational Institutions are required to pay tax on salaries, withholding tax on rent, property tax and patent tax.
The educational institution must fulfill the obligation to register the tax at the tax administration, record and maintain the correct accounting records, as well as submit the monthly and annual tax declarations in accordance with the law in force.
In case of failure or delay in fulfilling the tax obligations, the educational institutions shall be subjected to various penalties, including fines and interest in accordance with the tax provisions in force.