CEE Tax & Payroll Newsletter 3/2022

The CEE Tax & Payroll Newsletter aims to share Mazars’ latest news on tax, labour, and payroll legislation in the Central and Eastern Europe region, with the scope of helping you to prepare for the changes that could lie ahead in the following countries: Austria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, Slovenia, and Ukraine.

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Insights to guide you through today’s evolving regional tax, labour, and payroll landscape

Payroll taxation in the Central and Eastern European countries by Ana Luburić, Tax Manager, Global mobility services, Mazars in Croatia and Marko Ferić, Tax supervisor, Global mobility services, Mazars, Croatia.

Inflation relief package impacting payroll in Austria & Romania by Monika Raidl, Head of HR & Payroll, Mazars, Austria and Cătălina Călinescu, HR & Payroll Director, Mazars, Romania.

News from the CEE countries

Austria	Inflation relief package with measures to cushion inflation. Adjustment of family benefits to foreign price level contrary to EU law. Financial incentives for the electricity purchased from the renewable energy community.
Croatia	The tax reform in Croatia to fight against price increases. Croatian Tax Authority issued guidance on new TOMS rules applicable in Croatia.
Czech Republic ‎	DAC 6 – practical examples for reporting cross-border arrangements. What the amendment to the Income Tax Act will bring. Financial lease back from the VAT perspective in the light of case law. Taxation of low-emission vehicles provided to employees for business and private purposes. Changes in excise duties from February 2023.
Hungary ‎	Introduction of the global minimum tax scheme remains unclear. The bill for the new KATA (itemised tax of small businesses) Act passed into law. Energy efficiency is important for households, but also for companies. The eVAT is again on the agenda with a renewed concept. Companies can opt to enter into corporate income tax groups until 20 November.
Poland ‎	New regulations on Principles of Implementation of Tasks Financed from European Funds in the Financial Perspective 2021-2027. National System of E-Invoices (KSeF) - Poland received the approval of the EU Council for implementing the mandatory e-invoicing starting from 1 January 2024. Payer released from collection of PIT advances from the employee’s revenues. Further changes to business trips as from 1 January 2023.
Romania	RO e-Transport System, application of fuel price discounts, and value of nursery vouchers. Recycled plastic, Environmental Fund, Circular Economy, Sanitation Law updates. New amendments to the Tax Procedure Code & Reduction of excise duty on diesel used in agriculture. Major Fiscal Code changes.
Slovakia‎	New obligations for taxpayers through a draft of the Amendment to the VAT Act. Notifications about the Tax Reliability Index to the taxpayers. Draft amendment to the Slovak Income Tax Act and the Tax Administration Act. Changes in the amount of meal allowance. Payroll news from 1 January 2023.
Slovenia	Higher tax-free amount for commuting and business travel. Raising the limit for tax-free meal allowance. Law in the field of value-added tax to mitigate the increase in energy prices. Employers can receive a monthly subsidy for employing in green jobs.
Ukraine ‎	Operation of the business during martial law - legislative requirements that remained unchanged. Changes in state registration process. The National Bank of Ukraine fixed the new official exchange rate of the hryvnia to the US dollar. A new wording of the Law of Ukraine «On joint-stock companies». Updated list of critical import services.

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Payroll alert: Payroll news from 1 January 2023

Employers’ and employees’ representatives submitted an agreement on the amount of the monthly minimum wage to the Ministry of Labour, Social Affairs and Family of the Slovak Republic.

News on Income Tax and the Tax Administration Acts

The amendment brings, among other things, an amendment to the rules for determining the tax base of a taxpayer with limited tax liability in the territory of the SR, a change in the method of registration of selected types of taxpayers for income tax purposes and complements the procedure for tax treatment of claims in the case of preventive restructuring.

Draft of the VAT Act as of 1.1.2023 and 1.1.2024

The main goal of the proposed Amendment to the VAT Act No. 222/2004 Coll. is the implementation of Council Directive (EU) 2020/284, which introduces harmonized rules to combat tax fraud in the field of cross-border electronic commerce (e-commerce), and measures to check the correctness of the amount of tax declared.