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.