Tax & Legal Update
New regulation of kratom and low-level THC content cannabis
‘New’ or ‘designer’ drugs like kratom are rapidly changing the market of addictive substances, and their sale needs to be regulated. Under the new rules, it will only be possible to buy such products in specialised shops. Rules are also being…
Taxes Chamber of deputies: proposal to abolish notified agreement scheme
The planned introduction of a ‘notified agreement’ scheme for agreements to perform work outside employment is likely to be cancelled. A proposal has also been submitted in the chamber of deputies to abolish mandatory social security and health…
New limit for health-related benefits
The chamber of deputies is currently debating an amendment to the Employment Act and other changes to laws. In the area of income tax, it is proposed to introduce a new limit specifically for health benefits, up to the amount of average wage. The…
CJEU: Veggie burgers can be called burgers
Member states may not prohibit the use of names associated with animal-based products for plant-based foods if there is no specific legal definition of such names. Thus, according to the Court of Justice of the EU (CJEU), it is not possible to…
How to avoid assessment of tax using auxiliary mechanisms?
In some cases, the tax administrator may determine tax even without the taxpayer's cooperation, using auxiliary mechanisms. We summarise below what this means for the taxpayer and how to avoid this situation.
Retirement savings products likely to face changes to compounding of savings periods
Amending proposals have been submitted as part of the forthcoming amendment to the Act on Child Care Services in Children’s Groups to ensure that savings periods are added up upon the transfer of funds to new retirement savings products and that the…
Can an additional VAT return be filed after the end of a tax inspection?
The Supreme Administrative Court (SAC) dealt with a dispute concerning the possibility of filing additional tax returns for lower tax after a tax inspection had been completed. The Supreme Administrative Court sided with the regional court which…
Employee stock option plans to revert to old rules of taxation of income from…
After almost a year of uncertainty over the taxation of income from employee stock option plans, a proposal to amend the Income Tax Act was submitted by deputies during the discussion of an amendment to the Act of Child Care Services in Children’s…
Increased tax support for donations to apply until 2026
The chamber of deputies proposes to extend the applicability of the increased limit on the value of donations that taxpayers may deduct at 30% of the tax base until 2026. It also proposes to maintain the tax relief for donations made in support of…
CJEU: Electricity is commodity
The Court of Justice of the EU (CJEU) has ruled that a German company must charge Swedish VAT on supplies of electricity at charging stations in Sweden. The judgement provides clear rules for the taxation of electricity and highlights differences…
CJEU: VAT deduction on assets provided to suppliers free of charge
The Court of Justice of the EU (CJEU) has ruled in favour of the taxpayer in a dispute between an Austrian company and the Romanian tax authority over the deduction of VAT on an asset provided to a subcontractor. The tax authority had challenged the…
Flood 2024 programme: support for businesses through contributions for wage expenses
For businesses affected by this year’s floods, the government has approved the provision of support through contributions for wage expenses. The contributions will be provided under the Flood 2024 programme launched by the Ministry of Labour and…