CEE Tax & Payroll Newsletter 2/2021

Through our updates, we highlight and share our views on the major changes that will impact the business models of our clients. Discover the most recent topics announced across Central and Eastern Europe that impact businesses on an international scale, such as:

->> Changes to the tax regimes in the countries of the CEE region induced by the pandemic, alongside a unique comparison of tax systems in 21 countries through The CEE Tax Guide.

->> New amendments to the EU Posting of Workers Directive providing mandatory rules for employers on the minimum protection and establishing a process for member states.

Austria

->> Entities that have to wait for overpayments of VAT to be reimbursed are entitled to interest, according to a recent judgment handed down by the European Court of Justice.

Albania

->> The double tax treaty with the Kingdom of Saudi Arabia enters into force.

Croatia

->> Croatian tax administration has initiated an action aimed to identify hidden employment queries among entrepreneurs.

Czech Republic

->> HRP - Human Resources Portal helps companies to efficiently record employees’ work time.
->> Court Decision holds that Airbnb is a business activity and not the rental of property. (page 10)
->> The New Act on the Registration of Beneficial Owners includes a new definition of the beneficial owner, consequences of non-compliance with the registration obligation, and deadlines. (page 12)

Hungary

->> Personal income tax refund could be due to foreign expatriates.
->> The extension of EKAER obligation to construction materials is prolonged until January.
->> New rules on the Personal Income Tax refund for families with children were published.
->> The Hungarian Tax and Customs Administration clarifies the use of transfer pricing databases.
->> From January 2022, the minimum wage will be increased and as a result of this change, the amount of several aids, benefits, and allowances will also increase.

Poland

->> Electronic form of delivering official correspondence (e-Delivery) is being implemented.
->> New VAT settlement starting October - "SLIM VAT 2” package came into force.
->> VAT changes are proposed in the New Deal, starting January 2022.
->> Personal Income Tax changes are proposed in the New Deal, starting January 2022.

​​​​​​​Romania

->> Companies categorised as large taxpayers (updated list here) that perform transactions with affiliated parties exceeding certain annual materiality thresholds need to consider the preparation of the transfer pricing file. (page4)
->> January 2022 is the first reporting month for taxpayers embarking on the SAF-T reporting process. 
->> New measures were announced regarding packaging and waste packaging. (page 4)

->> New amendments to the Fiscal Code and the Fiscal Procedure Code were published about the corporate income tax, income tax, social security contributions, VAT, local taxes, etc. (page 5)
->> Check out the updates of the latest payroll legislation related to the minimum gross salary increase, fines for late payment, sub-declared work, overtime compensation, etc.​​​​​​

Russia

->> The current provisions of the Russian Tax Code pose a risk in terms of applying the VAT exemption and 10% rate ('VAT relief') to medical devices from 2022.

Slovakia

->> The VAT payers might be obliged to publish their bank accounts notifying the Financial Directorate, which might also extend the joint liability for tax.

->> As of 2022, Income Tax Act introduces changes in fringe benefits for employees.

​​​​​​​Slovenia

->> The European Commission intends to set up an observatory against tax abuse.
->> New tax cases from the Court of Justice of the European Union - The person holding the goods intended for delivery in another Member State is the person liable to pay the excise duty.

Ukraine

->> 20% VAT on commercial digital services may apply in Ukraine to foreign Internet companies such as Google, Microsoft, Apple, Facebook, Netflix, YouTube, and many others.

We hope that this overview will help you navigate more efficiently through the changes.