GFD’s new instruction: penalty waivers of up to 100 percent

The General Financial Directorate's (GFD) Instruction D-72 on the waiver of tax accessories (tax-related penalties and interest) became effective on 15 September, responding to the amendment to the Tax Procedure Code in effect from 1 July 2025 that…

GFD clarifies employee benefit treatment

An accompanying law to the JMHZ that amends the Income Tax Act is currently awaiting the president's signature. The amendment clarifies the rules for providing employee benefits with the aim of preventing salary/bonus swaps. Following this new…

Single monthly employer reporting: questions for GFD and ministry representatives

Next year, employers will get to see fundamental changes in taxes and mandatory contributions. The dozens of prescribed forms and reports they now must use will be replaced by a single monthly employer report (JMHZ). With Director General of the…

GFD unifies procedure for waiving tax penalty and interest

The General Financial Directorate has issued Instruction D-67, which unifies the procedure of waiving tax accessories – fines, penalties, or interest. The instruction is effective from 1 March 2025 and brings several changes compared to Instruction…

GFD Information on changes to VAT payer status and registration procedure

In connection with the amendment to the VAT Act effective from 1 January 2025, the GFD issued Information on the VAT payer status and registration procedure. The information provides more precise guidance on when a taxable person becomes a VAT payer…

GFD clarifies procedure regarding VAT waiver for electricity and gas

According to the General Financial Directorate (GFD), the waiver of VAT shall apply to electricity intended for any purpose. As for gas, the waiver shall apply both to supplies through the distribution system, and to tankers and cylinders. The GFD…

Information on ATAD – continued

In the March issue of our Tax and Legal Update, we commented on the General Financial Directorate’s Information on Measures Arising from the Implementation of the Anti-Tax Avoidance Directive (ATAD). This time we summarise information on the…

GFD’s Information on ATAD

The General Financial Directorate (GFD) issued its Information on Measures Arising from the Implementation of the Anti-Tax Avoidance Directive (ATAD), clarifying certain practical issues associated with the restricted deductibility of excess…