Tax & Legal Update
Surprising SAC judgment on taxation of income from sale of securities by individuals
The Supreme Administrative Court (SAC) opined on how individuals should proceed when determining the tax base for the sale of securities in foreign currencies (2 Afs. 4/2019 -38). The court held that the Income Tax Act gives taxpayers the option to…
Not keeping track of the other statutory representative? You are jointly liable for…
The Supreme Court (SC) is sending a warning to statutory representatives in limited liability companies: if you do not monitor your colleagues, you are in breach of the fiduciary duty / due managerial care, therefore co-liable for damage that would…
SC on breach of work duties by bank employee
The Supreme Court (SC) confirmed the validity of an immediate termination of employment of a bank employee working as a cashier. Entirely in line with its previous case law, it confirmed that duty breaches by bank employees must be viewed more…
SAC: vacation compensation to be included in R&D allowance
In recent judgement 1 Afs 429/2018, the Supreme Administrative Court (SAC) expressed its opinion on a widely discussed question: whether wage compensation paid to employees on vacation may be included in expenses claimed within a research and…
Prudential requirements for dealers in securities
In December 2019, new regulations dealing with prudential requirements for dealers in securities were published in the EU Official Journal, introducing a new categorisation of dealers in securities and rules for the remuneration of their employees,…
Another extreme penalty for insufficient personal data protection
1&1 Telecom GmbH, a German mobile service operator, was fined EUR 9.6 million for the failure to implement sufficient technical and organisational measures to protect the personal data of its customers. This is one of the highest penalties ever…
New rules facilitating cross-border corporate mobility within EU
Two amendments to Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 on certain aspects of company law aim to harmonise and modernise EU company law and improve the application of the freedom of establishment. The…
BankID passed by Chamber of Deputies
At the end of last year, the Chamber of Deputies passed an amendment to the Banking Act, establishing preconditions for the wider use of BankIDs and opening the market for electronic identification services. The amendment has yet to pass through the…
Current pitfalls of hiring employees from third countries
Employers often find it impossible to staff all open positions with domestic job applicants and have no other option than to hire foreigners. While for EU citizens, the formalities needed before they may start work can be arranged within a day,…
No more paper, e-sick notes are here!
On 1 January 2020, an amendment to the Sickness Insurance Act entered into effect and launched the electronic sick note project. E-sick notes should simplify the exchange of information between sick employees, district social security…
Changes brought by the amendment to the Corporations Act - I
The proposed amendment to the Corporations Act, which the deputies will be voting on again in January after it was returned to them by the Senate, is to enter into effect from 1 January 2021 and will bring a relatively high number of changes. We…
VAT: Correction of tax base for irrecoverable debts in detail
The amended wording of the VAT Act effective from 1 April 2019 introduced significant changes concerning corrections of the tax base in respect of irrecoverable receivables. The General Financial Directorate (GFD) has now published detailed…