Tax & Legal Update
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…
GFD information on transfer of heat and cold to 10% VAT rate
In its information effective from 1 January 2020, the General Financial Directorate (GFD) draws attention to the rules of determining the date of supply for the delivery of heat and cold. It provides examples how to technically solve the settlement…
Double taxation treaty with Korea in effect from January
A new double taxation treaty, which entered into force at the end of 2019, replaces the original document from 1992. Concerning tax withheld at the source, it applies already to income paid or credited at 1 January 2020, hence requiring a very rapid…
New environmental challenges for businesses
At the end of 2019, the Ministry of Industry and Trade announced another wave of calls within the Enterprise and Innovation for Competitiveness Operational Programme (OPPIK) focusing on energy savings and the efficient use of energy. The new…
Amendment to VAT Act for 2020: EC explains call-off stock arrangements
At its January session, the deputies’ chamber will discuss the amendment to the VAT Act introducing quick fixes in its second reading. Most neighbouring countries managed to implement the quick fixes before 1 January 2020. At the end of December…