Tax & Legal Update
GFD clarifies VAT regime upon resale of telecommunication services
Owing to a considerable degree of ambiguity primarily with respect to the resale of telecommunication services, the General Financial Directorate (GFD) decided to respond to frequent inquiries by publishing an appendix to the previously issued…
Amendments to tax laws at third reading
Amendments to tax laws (Print No. 873) will be subject to a third reading in the Chamber of Deputies, likely to occur after 10 January. The amendments should become effective on 1 April 2017. Discussions within the third reading will be quite…
Contracting several types of work may backfire on employers
The Labour Code gives employers several tools to make the relationships with their employees more flexible. The possibility of contracting more than one type of work in a single employment contract is one of them. In particular, this is practical…
Interest on retained excess deductions reconfirmed
It has been two years since the Supreme Administrative Court issued a breakthrough decision in the Kordárna case, confirming that the tax authority must pay interest on retained excess deductions to the taxpayer. Despite the court’s decision, tax…
Consideration paid after withdrawing from a contract for work
The Supreme Administrative Court (SAC) ruled (7 Afs 124/2016 – 35) on the VAT treatment of an amount that a customer paid to a contractor after withdrawing from a contract for work. The core of the dispute was whether the amount was a consideration…
OECD releases a multilateral instrument to modify double taxation treaties
Late in November, more than 100 states concluded negotiations on the wording of a new multilateral convention, which is an important part of the OECD’s action plan against base erosion and profit shifting (BEPS). This multilateral instrument will…
European Commission to overhaul corporate taxation
In late October, the European Commission released its proposal for major corporate tax reform. The package contains three areas: the common (consolidated) corporate tax base (CC(C)TB), mechanisms to resolve double taxation disputes, and measures to…
Long awaited amendment to the Corporations Act
Soon, we will mark the third anniversary of the Act on Corporations and Cooperatives (Corporations Act) coming into effect. Since the beginning, its application has been wrought with difficulties due to its inaccuracies and deficiencies. An…
A new IFRS16 Leases standard
The International Accounting Standards Board (IASB) issued a new IFRS16 Leases standard, introducing considerable changes in the method of accounting for leased assets. The new standard will affect a large number of business entities. Even though…
Corporate criminal liability after the amendment
All corporations should take note: on 1 December 2016, the awaited amendment to the Corporate Criminal Liability Act entered into effect. A number of significant changes should not escape the attention of any corporate entity – whether a…
How to correctly treat research and development?
A recent decision of the Supreme Administrative Court regarding a research and development expenditure deduction again emphasised the importance of expert opinions in cases of doubt. During inspections the tax authority must take into account the…