Central Europe Tax&Legal Highlights

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Central Europe Tax & Legal Highlights

September 2017

Welcome to the Tax & Legal Highlights newsletter. This page provides you with the latest information on tax and legal related issues from around the Central Europe region. For more specific information – choose your country and find out more about local tax practices and news around the region.

Bosnia and Herzegovina

Rulebook on the Assignment of ID Number, Registration and Identification and Records of Taxpayers Within the Territory of FBiH
The Federal Ministry of Finance adopted a new Rulebook on the Assignment of Identification Number, Registration and Identification and Records of Taxpayers Within the Territory of the Federation of Bosnia and Herzegovina (“Rulebook”) that was published in the Official Gazette of FBiH, no. 69/17 on 13 September 2017

Positive trend of tax collection in RS: in eight months 1,5 billion BAM
The Tax Administration of Republic of Srpska in the first eight months of this year collected 1,543 billion BAM on the Public Revenue Account of RS; which is 8% or 112,7 million more that in the same period last year, and therefore the positive trend of tax collection has continued.

In August record revenues from indirect taxes in BiH, 680 million BAM collected
The Indirect Taxation Authority of Bosnia and Herzegovina collected 680 million BAM in August, which is 66 million more compared to the same period last year.

This is the largest amount of collected revenues from indirect taxes in one month ever since the establishment of the Indirect Taxation Authority.

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Croatia

Reporting to the Croatian Tax Authorities on the membership of a multinational group subject to country-by-country reporting requirements
Croatian entities and branches that are part of multinational groups to which the Croatian country-by-country (CbC) legislation applies (that is, those with consolidated group revenue of EUR 750 million or more) will need to file a CbC notification and a CbC report with the Croatian Tax Authorities

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Estonia

Changes of interest taxation
As of 01.01.2018, clause which exempts interest paid on deposits from income tax, to a natural person, is annulled. From year 2018, the deposit with a credit institution is treated as a financial asset, from which the taxpayer can postpone the tax liability for the income received. Therefore, pursuant to subsection 40 (2) of the Income Tax Act, a taxpayer (in this case a credit institution) as a general rule is liable to withhold income tax on the income, however the credit institution is not liable to withhold income tax on interest, if the taxpayer has informed that interest has been received for the money in investment account (subject to different rules).

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Kosovo

Issue of Administrative Instruction (GRK) No. 09/ 2017 On Municipal Energy Offices
The Administrative Instruction on Municipal Energy Offices provides guidance on the duties and responsibilities of energy offices at the municipal level in Kosovo.

Central Bank Regulation on Branches and Subsidiaries of Insurers
Regulation of the Central Bank of Kosovo (CBK) stipulates rules on the opening and closure in and outside of Kosovo of branches and other subsidiaries of insurers.

Central Bank Regulation on the Licensing of Insurer Intermediaries in Kosovo
Regulation of the Central Bank of Kosovo (CBK) sets out criteria and procedures for the licensing of insurance intermediaries and re-insurance intermediaries in Kosovo.

Regulation of the Central Bank of Kosovo (CBK) on the Licensing of Insurers and Branches
This regulation provides guidance on meeting the minimum conditions, criteria and procedures set out for licensing insurers and branches with the minimum capital guarantee fund set at 2,200.000.00 Euro.

Regulation of the Central Bank of Kosovo (CBK) on the Issuance of Registration and Licensing Certificates
This regulation sets out that licensing or registration certificates shall be issued for an unspecified period and lists the information that shall be contained therein.

Regulation of the Central Bank of Kosovo (CBK) on Electronic Payment Instruments
This regulation provides a much-needed definition of electronic payment, electronic payment instrument and online payment instrument that was lacking previously in relevant regulations.

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Poland

New minimum wage rate
The government has announced a new minimum wage rate which will take effect on 1 January 2018.

CETA takes effect. Businesses can use CETA and its benefits applicable to competition and commercial relations
The European Union (EU) and Canada agreed the effective date for temporary application of the Comprehensive Economic and Trade Agreement (CETA) they have concluded. As of 21 September 2017 businesses can use CETA and its benefits applicable to competition and commercial relations. The possibility to import many EU and Canadian goods at reduced tariffs is among the key benefits. Please note that certain regulations shall become effective only when CETA has been approved by all Member States.

Shall Poland become a Super-Special Economic Zone? New business support principles presented by the government.
After over twenty years of operation, special economic zones (SEZ) are going to be reformed by Polish government. Mateusz Morawiecki, Deputy Prime Minister, Minister of Development and Finance, accompanied by Grażyna Ciurzyńska, Director, Investment Policy Department in the Ministry of Development, presented the proposal of the new support measures at Economic Forum in Krynica.

Transportation package: extending the range of goods subject to the monitoring obligation
On 22 September 2017 the Ordinance on goods whose freight is subject to the monitoring obligation issued by the Minister of Development and Finance (henceforth: the “Ordinance”) shall take effect.

Publication of the implementing regulation concerning specific information disclosed in transfer pricing documentation
New provisions on documenting intercompany transactions (new provisions of the Corporate Income Tax Act and Personal Income Tax Act) became effective on 1 January 2017.

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Romania

Tax Procedure Code: The impact of the most recent amendments for the taxpayers
Multiple amendments to the Tax Procedure Code have been recently approved by Government Ordinance no. 30/2017. The new amendments with significant impact refer to:

New national regulations on customs and excise duties
A series of amendments to customs legislation and excise duties have been published recently. Implementation of the authorization procedure for deferring the payment of import duties and the completion of the Nomenclature of excise goods codes, are the most important.

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Serbia

New Ministry of Finance Rulings – Value Added Tax
The right to deduct input VAT based on food expenses for individuals engaged based on agreement on work performed outside the employment relationship

New Ministry of Finance Rulings – Value Added Tax
The place of supply of services involving transloading of certain goods from a wagon to a truck

New Ministry of Finance Rulings – Value Added Tax
Determining the VAT debtor for the supply related to delivery with installation of computer equipment and software – systemic and applicative

New Ministry of Finance Rulings – Value Added Tax
The right of a taxpayer to reduce computed corporate income tax based on income realized from another country

New Ministry of Finance Rulings – Value Added Tax
The obligation to compute and pay withholding tax on income that a non-resident legal entity realized from a resident legal entity

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Slovakia

Information on Taxation of Income of Foreign Artists in the Slovak Republic
The Financial Directorate of the Slovak Republic published information for the public about the rights and obligations of taxable persons related to taxation of income of artists and performers who are taxable persons with limited tax liability highlighting the most frequent problems when meeting tax obligations.

Purchase of a business and taxation of assumed, outstanding payables
A statement on the taxation of outstanding payables acquired through the purchase of a business was published on the official site of the Financial Directorate of the Slovak Republic.

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