In our previous newsletter, we reviewed the most important tax amendments of the Act CXXV of 2016 on the amendments of certain tax laws and other related laws. Besides the tax regulations, the referred act also modifies the rules of accounting in several points from the year of 2017, therefore we considered necessary to discuss the details of it and devote a separate newsletter for this topic from the aspect of accountancy. The modifications shall be applied from the financial year of 2017, but substantial part of them can be applied for the financial year of 2016 too.
In December 2016 we informed you in our News Flash about the expected implementation of the rules of the European Union for so-called “country-by-country reporting” (CbCR) for multinational groups with total consolidated group revenue reaching 750 million EUR or more. These rules were approved by the National Council of the Slovak Republic on 1 February 2017 within the Amendment to the Act on international assistance and cooperation in tax administration and will be effective as of 1 March 2017. The publication of these rules in the Collection of Laws of the Slovak Republic is expected in the following days. The rules are based on the OECD Model Legislation for CbCR, which is a part of the updated OECD Transfer Pricing Guidelines since 2015.
From 2017, the rules of cafeteria in Hungary had been significantly changed again. All companies who would like to provide opportunity to their employees to freely choose their benefits now have to review their policies in the following months/weeks to transfer these current legal changes.
It often happens that private individuals receive gifts during representational events, or receive other benefits that are not necessarily related to specific events, occasions (and neither have to be related with purchasing). Benefits granted to private individuals have a very wide range, therefore in our current brief summary we are going to give a short overview about the most important details of these possible benefits and also about their taxation.
During the year 2016 almost all the important acts influencing the business environment in Slovakia were amended. Starting from the January 2017 the minimum wage increased and taxation on dividend paid to individuals and companies has been introduced. However, the new year also brought decrease of corporate income tax rate to 21% and introduction of interest payment in favour of a taxable person in case a VAT refund is postponed due to a tax inspection.
The latest amendment to the provisions of the VAT Act was introduced under the Amending Act on December 1st, 2016. This change sets forth new rules for quarterly VAT settlements which became effective as of January 1st, 2017.
Download our 2017 Guidelines for details about the statutory framework and local entrepreneurial environment in the Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine! We have prepared for each country: