CEE Tax & Payroll Newsletter 2/2021

 ->> 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.

Albania

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

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 (ECJ).

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.
->> 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. 
->> 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.
->> 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 as Google, Microsoft, Apple, Facebook, Netflix, YouTube, and many others.
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We hope that this overview will help you navigate more efficiently through the changes.