Taxes
Amendment to VAT for 2021: e-commerce
From 2021, a special mini-one-stop-shop regime will also apply to the sale of goods by mail order. Under the new amendment, such sales will be taxed in the recipient’s country, potentially excepting small businesses. For harmonisation purposes, the…
Government proposal to abolish immovable property acquisition tax goes to chamber of…
At its session on 30 April 2020, the government passed a proposal to abolish the tax on the acquisition of immovable property, with retrospective effect. Individuals will no longer have the option to deduct from their income tax base interest paid…
COVID-19 and intra-group services – a transfer pricing perspective
Implementing emergency plans, trying to keep a positive cash flow, or monitoring the quick succession of legislative changes adopted in connection with the coronavirus pandemic – these have become corporate management’s daily bread. Remuneration…
Compensation bonus for members of limited liability companies with no employees or…
The government has passed an amendment to the Act on Compensation Bonuses, allowing them to be also paid to members of limited liability companies (‘s.r.o.s’) that have no employees and no more than two members, or members who belong to a single…
Waiver of VAT on the grounds of an extraordinary event
Value added tax on free delivery of goods and provision of services to selected entities is waived until the end of the state of emergency declared to fight the spread of the SARS-CoV-2 coronavirus provided that the goods and services serve to stop…
Postponement of advance payments on income tax on dependent activities and of…
The General Financial Directorate (GFD) has published a guideline allowing payers of personal income tax on dependent activities to apply for postponement of advance payments or for payment of the tax in instalments. Postponement (or payment in…
Impact of governmental measures on the application of double taxation treaties
In response to the extraordinary governmental measures adopted in the context of the COVID-19 pandemic (e.g. restriction of travel, quarantine), the OECD has released a recommendation to address certain tax implications of a temporary change of the…
Extending compensation bonus period for the self-employed
The government has agreed on a bill extending the period for which self-employed persons may draw a compensation bonus in connection with the emergency measures. The bill still has to be passed by parliament and signed by the president.
Deadline for VAT refund only extended from next year?
On 21 April 2020 the government approved a bill on the administration of tax deductions, which should ensure that excess deductions of VAT shall be refunded to VAT payers within the currently valid 30-day deadline. The bill intends to suspend the…
Tax loss carry back
The Ministry of Finance has proposed an amendment to the Income Tax Act introducing the option to utilise tax losses retrospectively for up to two years, or prospectively for up to six years. This would not be just a temporary solution, as the…
Rent payments in pandemic times II – tax implications
The governmental bill on certain measures to mitigate the effect of the SARS-CoV-2 pandemic aims to protect lessees of commercial premises that are in default with rental payments. The bill may have a negative impact on lessors’ cash flows, due to…
COVID-19 and transfer pricing
While liberation packages may mitigate the immediate effects of the COVID 19 pandemic on businesses’ financial performance, sooner or later, enterprises that are part of multinational chains (MNEs) will have to deal with the crisis’ consequences for…