In our series #PeopleOfAccace, we bring you behind the scenes of Accace through interviews. You will learn how new services and solutions are created here, who has been at Accace the longest and what positions they have held over the years, but most importantly, you will get to know our wonderful people. In the current interview, we interviewed the entire team of the Slovak HR heroines.

The HR team is generally essential for the effective functioning of the company. Can you introduce yourselves a bit and explain what your main tasks and responsibilities are at Accace? Are your roles in the team individually divided?

Our internal HR team consists of 2.5 people, which doesn’t mean one member is half-sized but that one works part-time. However, we couldn’t imagine our functioning without her. Our team consists of HR Manager Veronika, HR Generalist Dominika K., and HR Assistant Dominika R. Each of us is different, but we complement each other like puzzle pieces, understand each other perfectly, and form a great team, learning from each other.

Veronika focuses more on key decisions at the management level and the functioning of the human aspect at Accace, payroll, HR reporting, group HR projects, and HR processes. She also lends a helping hand to both Dominikas and acts as an advisory body for process handling of HR requests and legislative questions.

Dominika K., as an HR Generalist, is here for our colleagues, ensuring the recruitment of new team members, their integration into the work environment, handling personnel requests, advising and helping colleagues not only with work-related but also very often personal matters, and she loves creating new projects and connecting people.

Dominika R., the HR Assistant, loves administration and perfect order. She has a great eye for detail when filling out or creating spreadsheets, contracts, and maintaining order in employee files. As a form of relaxation from administration, she takes care of the recruitment portal, advertises job positions, enjoys selecting resumes, and arranging interviews with our potential new colleagues.

Our agendas are very closely interconnected, which helps us create a comprehensive picture of what’s happening at Accace, about HR as such, ensuring substitutability and continuous functioning.

How would you describe the atmosphere in the HR team and what values are most important to you at work?

The atmosphere in our HR team is the most important thing we have, and we are happy that we understand each other on a personal level as well. Even though we can work from home, we spend a lot of time in the office because we enjoy being together. If we are not together in the office, we are in daily contact online. Each of us has a different work orientation, which ultimately helps us bring different perspectives to the issue and find the best solutions for all parties. All three of us agree that mutual respect, esteem, flexibility, and the ability to communicate openly when looking for solutions are important values for us. We support each other and function together as a team.

What are the biggest challenges you face and how do you overcome them? Can you share an interesting fact about yourselves that perhaps no one knows?

The biggest challenge for all of us is time! We definitely have the desire to change things, bring new ideas and changes, and create a pleasant and prosperous working environment. We also try to streamline and improve processes to reduce the number of laborious tasks, allowing us to be here mainly for our colleagues. However, we struggle with a lack of time, so some changes and ongoing or new projects take longer than we would like.

And what does no one know about us? All three of us really care that the decisions being made are the best and most feasible for everyone involved. Often, this involves lengthy discussions and calls with multiple parties and various institutions to find a solution that suits the individual, the team, and the business.

If we are to introduce ourselves a bit outside of work life, Veronika is a passionate athlete who gets up at 5:30 AM to run or exercise and continues with a second workout in the evening. Dominika R. enjoys spoiling us with cakes that she bakes herself – and they are really delicious! Dominika K. is our cheerful sunshine who wandered the world for 10 years and is now happy to be a proud Slovak back home. She actively spreads joy and positivity wherever she goes, especially among younger generations, and brings new ideas from around the world.

How do you contribute to improving working conditions and employee satisfaction at Accace?

We work in a sector where certain above-standard conditions are natural for us, such as stability, a pleasant atmosphere, flexibility, and the possibility to work from home. For many companies, these are unthinkable things or ones that HR has to deal with. We have the gift of being able to focus on improving communication with employees through various tools, working with other teams including reception, creating interesting activities to please and relax our colleagues throughout the year, giving them a reason to come to the office and meet colleagues.

We also see the importance of education, not only professional but also personal growth, mutual understanding, and growth within the company. This is a key role we focus on.

What inspired and motivated you to choose the field of HR? What attracts you the most to this job?

Dominika R.: I got into HR through a love for administration. Although I studied diplomacy, I feel that I still have time for diplomacy as such and don’t want to pursue it yet. However, I am an HR diplomat daily in my work. I knew I wanted to work with people, be there for them, and help them, so when I saw that Accace was looking for an HR & Office assistant, I knew I had to try. I am extremely grateful that Veronika, Dominika, and at the time, Adka and Sima gave me the chance to become part of their teams, to learn, and that I can be beneficial here.

Veronika: The HR field appealed to me already during my studies and motivated me even more in my first job. I wanted to work with people, support them in various work or personal situations, and meet new personalities. I like the HR field also because of its dynamic character, varied agenda, interesting moments, and different types of people. No day is boring or the same; I constantly learn something new, not only in the HR field but also in other areas, often from our colleagues in the law firm.

Dominika K.: For me, it was always about people and for people. I worked in a team with people who didn’t always have the happiest stories, but work was a place where they felt good. So, I decided to study strategic human resources management, where we learned how to create conditions where people can thrive, which goes hand in hand with business prosperity.

Doing business in Poland has many advantages, as its already developed market is constantly emerging and is considered the biggest one in the CEE region. Its local economy has proven stability and immunity during many challenges of the recent years, which makes it a great destination during these turbulent and uncertain times.

Despite issues with supply chain caused by the recent global situation, Polish economy shows relatively high and stable GDP growth of approx. 2,6%. Poland is one of the three fastest growing countries in the EU, surpassed only by Malta and Ireland.

Attractive market with highly qualified employees, while still not as costly as in other EC jurisdictions, is a great “go-to” location, not only for passive equity investment, but also for R&D and logistic centers.

Accace - Doing business in Poland

Download our eBook on doing business in Poland or read more below

Industries and investment incentives

Industries

Wholesale and retail, manufacturing, agriculture, logistics and transportation and IT play a vital role in Poland’s economy and are considered the largest industries.

The strongest workforce is centered in the listed industries, which is important to consider when you are planning on doing business in Poland.

Investment incentives

In Poland, favoured investment incentives are provided in the following forms:

  • tax exemptions
  • grants
  • investment loans on preferential terms
  • preferential taxation when developing your business

Poland offers a wide range of investment incentives, especially for the following industries:

IT

Renewable energy

Automotive

Manufacture

Logistics

Company formation

The most common legal form for doing business in Poland is a limited liability company (LLC in short).

The incorporation time for an LLC is approximately 2-3 weeks. Registration in simplified procedures can be finished even within 24 hours. Tax ID is provided within 1-2 working days since registration in commercial register and registration to VAT takes up to 30 days.

The fee for establishing this type of company is PLN 600 of government fees. Other fees to consider are share capital (min. PLN 5 000), registered address fees, tax on civil law transactions in the amount of 0,5% of company’s capital, in case of not using simplified procedure the cost will increase by notary’s fee.

Setting up an LLC requires at least one shareholder (either individual or legal entity) and at least one director, who can be the same as the shareholder.

Official company register of Poland is open to public and can be accessible at https://wyszukiwarka-krs.ms.gov.pl/

Corporate taxes

Corporate income tax

In Poland, the corporate income tax (CIT) rates are:

  • 19% standard rate
  • 9% reduced rate

The reduced CIT rate of 9% can be applied for income, other than capital gains, if the taxpayer:

  • is a small taxpayer (i.e. taxpayer whose value of sales revenue, including the amount of VAT due, did not exceed the amount corresponding to the PLN equivalent of EUR 2 million, in the previous fiscal year) or
  • started its business activity, provided the establishment of the company doing business in Poland was not a result of transformation or merger (in the first tax year)

The tax period in Poland is the calendar year, ending either on 31 December, taxpayer may change the tax year starting and ending dates in articles of association.

The due date for filling the CIT return is by the end of the third month following the end of the year. The filing deadline cannot be extended. Polish tax residents are subject to taxation throughout the world, unless there is an appropriate double taxation treaty between Poland and which stipulates that foreign income is exempt from taxation in Poland. Foreign is exempt from taxation in Poland.

Non-residents are taxed only on income earned in Poland. Poland’s double taxation treaties may result in certain income not being subject to taxation in Poland regardless of its source.

There is a separation of income/loss derived from capital transactions (capital gains) from other sources of income/loss (also known as operating income/loss). Income and expenses related to each “basket” are disclosed separately. It is not possible to offset the income earned from one “basket” with the loss incurred in the other “basket.” Income in both baskets is taxed at a 19% CIT rate. In addition to share/equity transactions, the equity basket includes royalties, license fees and similar rights.

When doing business in Poland, a company is considered as a tax resident if it:

Has a registered seat in the country

Has a place of management located in the country

VAT

Polish VAT applies to the following activities:

  • Supplies of goods and services within the territory of Poland
  • Exports of goods outside the territory of the European Union
  • Imports of goods from countries that do not belong to the European Union
  • Intra-Community acquisitions of goods (imports from countries belonging to the European
  • Union)
  • Intra-Community supplies of goods (exports to the countries belonging to the European Union)

In Poland, VAT rates are the following:

  • 23% standard rate
  • 8% reduced rate
  • 5% reduced rate
  • 0% rate on exemptions

All resident registered companies doing business in Poland should apply for VAT registration, with the exceptions of companies that had annual turnover of less than PLN 200,000 annually, or they sell only goods and/or services that are exempt from VAT Tax.

A non-resident company doing business in Poland, established in another EU member state or in a third country, has to be registered for VAT in Poland if it has a permanent establishment in Poland from which, it can provide its services or goods, or when it carries out taxable transactions in Poland, for which it is not required to have permanent establishment, but they must pay Polish VAT.

Basic principles of calculation

As a general rule, output VAT is equal to input VAT minus output VAT (in other words, input VAT is deducted from output VAT).

Input VAT can be deducted from output VAT when a company doing business in Poland (with VAT status) receives an invoice for goods or services purchased. Input VAT cannot be deducted unless the purchased supply is related to VAT-taxable activities. In addition, the deductibility of VAT is limited by the VAT Law with respect to the purchase of certain goods and goods and services. In addition, subject to a number of conditions, output VAT may be reduced when receivables arising from sales subject to VAT become uncollectible.

Other taxes

Excise taxes

Excise tax is imposed on energy and electricity products, alcoholic products, tobacco products, other petroleum products.

Tax on means of transport

Tax on means of transport is charged on vehicles above 3,5 t, certain tractors and semi-trailers, buses.

Property tax

Property tax is imposed for land that is not agricultural or forest, buildings, flats, or separated business premises.

Inheritance and gift tax

The closest family members from group 0 are exempted from tax, in case transaction was notified to Tax Office, outside of this group depending on the closeness of family members and classification on Tax group there are different tax rates: 3%, 7% and 12%.

Retail tax

Retail tax is based on excess of retail sales in particular month above 17 million PLN, 0,8% when the Tax base is not higher than 170 million PLN, and 1,4 % above it.

Tax on financial institutions

Tax on financial institutions applies on financial institutions such as: domestic banks, and branches of foreign bank, credit institutions, cooperative savings and credit unions, domestic insurance and reinsurance companies, branches and main branches of foreign insurance and reinsurance companies, or lending institutions. Tax rate is 0,0366% of the tax base per month. Taxed are assets of institutions.

Tax on civil law transactions

Tax on civil law transactions is imposed for only transactions indicated in Tax Act are the basis for this Tax, i.e., sales, loans, mortgage, incorporation of company.

Minimum income tax

New tax obligation, which is applicable to taxpayers declaring tax losses or negligible income (=<2% of the revenue). The regulations are postponed until the end of 2023. As a result, the minimum tax will be applicable from 1 January 2024, and the first payment will occur in 2025.

The minimum income tax rate is 10%.

Withholding tax

Some payments made to non-residents are subject to WHT. The rate is 19% in case of dividends, and 20% in case of interest, license and management fees, fees for know-how, advisory, legal or accounting services.

Mineral Extraction tax

At the moment taxed are extracted minerals such as copper, silver, oil and natural gas.

Incentives

Investment incentives

Special Economic Zone is a special incentive that under certain conditions guarantees investors doing business in Poland a number of privileges, including tax exemptions and bonuses for projects contributing to competitiveness and innovation of local economies.

R&D incentives

The R&D incentive entitles enterprises doing business in Poland to reduce the tax base by costs spent on research and development activities. R&D activity is understood as creative work involving scientific research or experimental development work undertaken on systematic basis in order to increase knowledge resources and use of that knowledge to develop new applications. The R&D relief allows for deduction of 200% of R&D costs – firstly the costs are deducted as operating costs (100%), secondly, they are deducted from the tax base (revenue), also 100%. The list of specific costs eligible for the R&D credit is provided in the CIT/PIT regulations.

Young and elderly employees

In case of employees under 26 years old employment income up to 85,528 PLN per year is exempt from tax

Labour law and employment

Entitlement to work

In Poland, the following natural persons are entitled to work:

  • Polish citizens
  • EEA citizens
  • Third country citizens based on special provisions/work and residence permits

Employment contracts

The following employment contract are available when doing business in Poland:

  • Contract for indefinite period
  • Contract for definite period
  • Contract for trial period

Employee taxes and contributions

Taxes on personal income

Polish tax residents pay PIT on their worldwide income. Non-residents are subject to Polish PIT on their Polish-sourced income only.

The personal income tax (PIT) rates in Poland are:

  • 32% or
  • 12% stake based on individual income

For personal income tax purposes, the taxable period is set as the calendar year.

The due date for PIT return is the 30 April of the following year.

Tax residents are considered the individuals who:

  • have a permanent residence in Poland
  • stay longer than 183 days in the country

Taxable incomes in Poland are net incomes from all income sources, that are not exempted.

Social security and health insurance contributions

Type of insurance Paid by employer Paid by employee Total
Pension Fund* 9.76% 9.76% 19.52%
Disability Fund* 6.50% 1.50% 8.00%
Bridging Pension Fund (FEP) 0.00% or 1.50% 0.00% 0.00% or 1.50%
Illness Fund 0.00% 2.45% 2.45%
Accident Fund 0.67% – 3.33% 0.00% 0.67% – 3.33%
Employees’ Guaranteed Benefits Fund 0.10% 0.00% 0.10%
Labor Fund 2.45% 0.00% 2.45%
Total (up to limit) 19.48% – 22.14% 13.71% 33.19% – 35.85%
Total (past limit) 3.22% – 5.88% 2.45% 5.67% – 8.3%

* Once an individual’s gross remuneration exceeds 30 average estimated national salaries for a given year (PLN 234,720 for 2024) the obligation to pay contributions toward these funds ceases

The health contribution is 9% of the base which is income less social security contributions. The health contribution is not deductible from income tax. As of July 1, 2022, selected groups of self-employed taxpayers again have the opportunity to deduct paid health contributions from income. Major changes in this area are planned for 2025.

Doing business in Romania has many benefits: a market with strategic location, vast potential and well-educated workforce, offers numerous possibilities for foreign investors who are thinking about entering the European market or expanding their business in the region.

The IT industry, being one of the largest and most profitable industries in Romania, benefits from attractive investment incentives. For instance, employees working in IT&C companies have an income tax rate of 0%, up to the level of Lei 10,000 gross per month. Moreover, local tax exemptions apply for investors setting up manufacturing locations or offices in industrial, scientific or technological parks.

Accace - Doing business in Romania

Download our eBook on doing business in Romania, or read more below

Industries and investment incentives

Industries

The IT industry is one of the largest and most profitable industries in Romania, having also strong workforce given the technical and IT educational environment.

The following industries have the strongest workforce, which you should consider when planning on doing business in Romania:

IT

medical

engineering

Investment incentives when doing business in Romania

IT&C companies doing business in Romania are favoured by investment incentives. The income tax for employees working in IT&C companies is 0% up to a limit of Lei 10,000 gross per month, in compliance with the Romanian current legislation.

In addition, investors setting up manufacturing locations or offices in an industrial, scientific or technological park benefit from some exemptions on local taxes. Employees who have income in the agricultural and food industry can be supported by fiscal incentives under certain conditions. Taxpayers that are performing R&D activities may also enjoy tax incentives in the area of corporate income tax and salary tax.

Company formation

The most common form of doing business in Romania is through the Limited Liability Company (or LLC in short). The minimum required capital for setting up an LLC is only RON 1.

An LLC in Romania can have between 1 and 50 shareholders. The shareholders respond in the limit of the contribution to the share capital.

A Limited Liability Company can be founded by natural or legal entities and must be registered to the Trade Register.

The limited liability company may be managed by one or more directors, separately or together, appointed within the Article of Association and which can be revoked by shareholders’ resolution (GSM/EGSM) or by the sole shareholder’s decision, as the case may be.

Certain activities need prior authorization for doing business in Romania (e.g., credit institutions, insurance brokers, companies which produce and/or sell firearms and ammunition, pension fund).

Certain activities need to be authorized after the registration of the company (e.g., temporary work agents, companies that require transportation licence).

The main document, needed for incorporating a company, is the ”Articles of Incorporation”. This document must contain the following aspects:

  • company’s name and its registered seat
  • a list of the company’s members, with their respective addresses, date of birth, personal tax number
  • the main activities of the company doing business in Romania (certain activities require special permits)
  • the amount of share capital and distribution
  • representation of the company, the method of signing in the name of the company
  • identification data, the duration of the mandate, the powers conferred on them and whether they are to exercise them jointly or separately details identifying the beneficial owners and how the company control is exercised, if applicable
  • the duration of the company, if founded for a fixed period
  • all other items are relevant to the given form of business as required by the prevailing act of law

The incorporation procedure of a company for doing business in Romania consists mainly in:

  • reserving the name of the company
  • drafting the relevant documents (mainly constitutive act of the company and shareholders and directors’ statements)
  • filling the registration application within the Trade Register

The registration of a company doing business in Romania is mandatory in the country:

  • the incorporation procedure must be initiated by request.
  • the registration request must be filed with the competent Trade Register Office.
  • company registration request may be submitted with electronic signature via the Trade Register portal or at the registrar’s office of the authority.

There are no fees applicable for the Trade Register, however Official Gazette fees for publishing documents will be applied.

After submitting the complete file to the Trade Register, the request is usually processed in 3 working days. Sometimes, the approval of the file may be delayed because additional documents are requested by the Trade Register’s referents. The website of the Trade Register where online request can be submitted is https://portal.onrc.ro

After the incorporation, the company doing business in Romania must register within the Romanian Fiscal Authorities in 30 days and open the bank account.

Corporate taxes

Corporate income tax

  • 16% is the standard rate of corporate income tax in Romania
  • 16% rate applies to taxpayers that carry on activities such as gambling and nightclubs on the taxable profit, or
  • 5% is the rate that is applied to taxpayers that carry on activities such as gambling and nightclubs on income received from such activities, depending on which is higher
  • 1% is the rate for taxpayers with a turnover higher than EUR 50,000,000 in the previous tax year, starting from January 2024, if the corporate income tax is lower than the minimum tax on turnover.

The tax period in Romania can be either the calendar or fiscal year, which may differ than the calendar year

Taxpayers doing business in Romania must submit their quarterly CIT returns by the 25th day of the first month following the first, second, and third quarters. The annual CIT return is due by March 25 of the following year for which the CIT is due in case the fiscal year equals the calendar year. For 2023, the deadline was extended to 25th of June. In case the fiscal year is different than the calendar year, the annual CIT return is due by the 25th day of the third month after the end of the company’s fiscal year.

A company doing business in Romania is considered as tax resident if:

it is set-up under the Romanian law, or

it has its legal seat in Romania, or

its place of effective management is in Romania.

VAT

  • 19% is the standard VAT rate in Romania
  • 9% the reduced rate applies to medicines, water, food and beverage industry – save for alcoholic beverages and beverages with a high concentration of sugar, restaurant and catering services, hotel accommodation, supply of housing under certain conditions etc.
  • 5% an extra-reduced rate applies to supplies of schoolbooks, newspapers, magazines, admission fees to castles, sport events, museums, cinemas, etc.

VAT registration

Romanian tax residents doing business in Romania are required to register for VAT when their annual turnover exceeds EUR 88,500 (RON 300,000). Voluntary VAT registration before the threshold is exceeded is also possible.

Non-resident taxable persons established in Romania through fixed establishments and non-residents having no actual presence in Romania can register for VAT without exceeding the threshold of EUR 88,500 (RON 300,000) on annual turnover or may be even required in certain specific cases.

A taxable person that is not established in Romania performing intracommunity distance sales of goods to Romania (mail order business) to any non-taxable person or a person not registered for Romanian VAT, shall either register for VAT purposes in Romania if the annual volume of intracommunity distance sales, as well as the volume of telecommunication, broadcasting and electronic services cumulatively exceed the EUR 10,000 threshold. Alternatively, the One-Stop-Shop regime that was designed to avoid VAT registration in multiple EU countries may be applied if the prerequisites are met.

Other taxes

Excise tax

Energy tax

Property tax

Road tax

Real estate tax

Wealth tax

Any type of local or regional income tax

Any other type of taxes not mentioned above

Labour law and employment

Entitlement to work

According to article 10 of Law no. 53/2003 (Labor Code), the Individual Employment Contract is the agreement based on which a natural person, referred to as the employee, undertakes to perform work for and under the authority of an employer (company doing business in Romania), natural or legal person, in exchange for payment.

As such, any natural person can be employed, regardless of whether they are a Romanian citizen, a foreign citizen, stateless person or a refugee.

According to the Romanian law, the future employee must be at least 16 years old to be able to conclude an individual employment contract.

For teenagers who have reached the age of 15, such a contract can be concluded only with the consent of the parents or legal representatives and only if the job does not endanger their health.

Employing a person under the age of 15 is strictly prohibited in Romania. In addition, work in difficult or dangerous conditions cannot be performed by persons under the age of 18.

Employment contracts

In Romania, the individual employment contracts can be classified according to several criteria, as follows:

Duration

The Individual employment contract concluded for an indefinite period

This type of contract is regulated by art. 12 para. 1 of the Labour Code and represents the rule regarding the duration for which the individual employment contracts are concluded. This assumption is regulated by the Romanian law as a means of employee protection.

Individual employment contract concluded for a fixed period

In accordance with the provisions of art. 82-87 of the Labor Code, the individual fixed-term employment contract will be concluded in writing and will expressly contain the period for which the contract is concluded, a period that cannot exceed 36 months (3 years).

The individual employment contract can be concluded for a determined duration only in the following cases:

  1. replacing an employee whose employment contract is suspended, except for the case in
    which that employee participates in the strike;
  2. the increase and/or temporary modification of the structure of the employer’s activity;
  3. carrying out seasonal activities;
  4. in the event where the employment contract is concluded based on legal provisions issued
    with the aim of temporarily favoring certain categories of unemployed persons;
  5. employment of a person who, within 5 years from the date of employment, meets the
    conditions for retirement due to the age limit;
  6. occupying an eligible position within trade unions or non-governmental organizations, during
    the term of the office;
  7. the employment of retirees who, under the law, can cumulate the pension with the salary;
  8. in other cases, expressly provided by special laws or for carrying out works, projects or
    programs.

Between the same parties, no more than 3 individual fixed-term employment contracts can be concluded successively. Individual fixed-term employment contracts concluded within 3 months of the termination of a previous fixed-term employment contract are considered successive contracts and cannot have a duration greater than 12 months each.

Number of working hours

Full-time employment contract

This type of contract usually involves a work schedule of 8 hours per day, i.e., 40 hours per week, in principle from Monday to Friday (inclusive).

Part-time employment contract

This type of contract assumes that the number of normal working hours, calculated weekly or as a monthly average, is lower than the number of normal working hours of a comparable full-time employee.

Such an agreement must include provisions related to the duration of the work and the distribution of the work schedule, the conditions under which the work schedule can be changed and the prohibition to work overtime, except in cases of force majeure or for other urgent works intended to prevent the production of accidents or removing their consequences.

If these elements are not specified in an individual part-time employment contract, the contract is considered to be concluded for full time.

These types of contracts, in turn, can be concluded either for an indefinite period or for a fixed period.

Place of activity

On-site

An employment contract is considered concluded for on-site work if the employee must perform his activity either at the employer’s headquarters or one of its workstations.

Work-from-home

The work-from-home contract is regulated by art. 108 para. (1) of the Labor Code and implies that the employees must perform their duties at their domicile or place of residence. In this case, the employee sets his own work schedule, observing the deadlines and the number of hours provided in the contract.

The work-from-home employment contract is concluded only in written form and must contain, apart from the provisions specified in art. 17 para. (3) of the Labor Code, the following:

  1. the express statement that the employee works at home;
  2. the program within which the employer is entitled to control the activity of his employee and
    the concrete way of carrying out the control; and
  3. the employer’s obligation to ensure the transport to and from the employee’s home of the
    resources and materials they use in their activity, as well as of the finished products they
    make.

Teleworking

Telework is the type of work organization through which the employee, on a regular and voluntary basis, fulfils the duties required by their position, occupation or job they hold in a place other than the workplace organized by the employer, using information and communication technology, as regulated by the provisions of art. 2 of Law no. 81/2018 on the regulation of telework activity.

In the case of telecommuting, the individual employment contract contains, apart from the elements provided for in art. 17 para. (3) of Law no. 53/2003, republished, with subsequent amendments and additions, the following:

  1. the express statement that the employee fulfils their duty in telework regime;
  2. the period and/or days in which the teleworker carries out his/her activity at a workplace
    organized by the employer;
  3. the location(s) of the telemarketing activity, as agreed by the parties;
  4. the program within which the employer is entitled to verify the activity of the teleworker and
    the specific way of carrying out the control;
  5. the method of highlighting the working hours provided by the teleworker;
  6. the responsibilities of the parties depending on the place/places of the telework activity,
    including the health and safety responsibilities, in accordance with the provisions of art. 7
    and 8;
  7. the employer’s obligation to ensure the transport to and from the place of the telework
    activity of the materials that the teleworker uses in his activity, as the case may be;
  8. the employer’s obligation to inform the teleworker about the provisions of the legal
    regulations, from the applicable collective labour agreement and/or the internal regulation, in
    the matter of personal data protection, as well as the teleworker’s obligation to comply with
    these provisions;
  9. the measures taken by the employer so that the teleworker is not isolated from the rest of
    the employees, which ensures him the opportunity to meet with his colleagues on a regular
    basis;
  10. the conditions under which the employer bears the expenses related to the telecommuting
    activity.

An employment contract that does not require the physical presence of the employee at the employer’s premises gives the employee the same rights as those who work at the employer’s premises.

In Romania, there is another type of individual employment contract, namely the apprenticeship contract. This type of the contract is regulated by the provisions of art. 208-210 of the Labour Code. In this case, the employer will pay the employee a salary, but will also undertake to provide him with the necessary training for the job qualification, for a certain period.

Not least, art. 88 of the Labour Code, regulates one more type of work, namely work through a temporary work agent. In this situation, the work is performed by a temporary employee who performs the work for a final beneficiary, following the disposition of the temporary work agent.

Employee taxes and contributions

In Romania, the beneficiaries of income from salaries and salary assimilated income owe a monthly, final tax, which is computed and withheld at source by the payers of the income amounting to 10% of the Beneficiary’s income, computed according to the provisions of art. 78 of the Fiscal Code.

According to art. 80 of the Fiscal Code, payers of salaries and salary assimilated income have the obligation to compute and withhold the tax related to the incomes of each month on the date of payment of these incomes, as well as to pay it to the state budget up to and including the 25th of the month following the one for which these revenues are paid.

In accordance with the provisions of art. 81 of the Fiscal Code, payers of salaries and salary assimilated income have the obligation to file a monthly tax return for each income beneficiary, until the monthly deadline i.e., up to and including the 25th of the month following the one for which the taxes are paid.

An individual is considered a tax resident under the following conditions:

  • they have a permanent home in Romania, which can be owned or rented or remain in any way available for said person and/or his/her family;
  • they have residence in Romania;
  • they are present in Romania for a period (or more periods) exceeding a total of 183 days, during any 12 consecutive months, ending in the current calendar year;
  • they are a Romanian citizen working abroad, as an official or employee of Romania in a foreign state;
  • they have the centre of their vital interests in Romania.

Other elements that are considered when establishing residency in Romania but only together with the elements mentioned above:

vehicle registered in Romania;

driver’s license issued by the Romanian authorities;

passport issued by the Romanian authorities;

the person is insured by the social insurance system in Romania throughout the period in which he/she stays abroad;

the person is insured by the social health insurance system in Romania throughout the period he/she stays abroad.

According to art. 61 of the Romanian Fiscal Code, the types of income that are taxable in Romania are the following:

  • income obtained from independent activities, as defined by art. 67;
  • income obtained from intellectual property rights, as defined by art. 70;
  • income obtained from salaries and salary assimilated income, as defined by art. 76;
  • income obtained from rents, as defined by art. 83;
  • income obtained from capital gains, as defined by art. 91;
  • income obtained from pensions, as defined by art. 99;
  • income obtained from agricultural activities, forestry and fishery, as defined by art. 103;
  • income obtained from prizes and gambling, as defined by art. 108;
  • income obtained from real estate transactions, as defined by art. 111;
  • income obtained from other sources.

The rate of the social security contributions, paid by the employer in Romania is not applicable.

25% is the rate of the social security contributions paid by the employee in Romania in accordance with the provisions of art. 138 of the Fiscal Code.

The employers have the obligation to calculate and withhold the tax related to the social insurance contribution owed by natural person who obtains income from salary and incomes assimilated to salary.

The rate of the health insurance contributions, paid by the employer in Romania is not applicable.

10% is the rate of the health insurance in accordance with the provision of art. 158 of the Fiscal Code.

The employers have the obligation to calculate and withhold the tax related to the health insurance contribution owed by natural person who obtains income from salary and incomes assimilated to salary.

Are you sending your Czech employee on a business trip? If so, you need to consider the business travel legislation in the Czech Republic and some other crucial aspects in order to stay compliant. In this infographic we outline a basic overview of definitions, requirements and details to help you better understand the scope of work around traveling for business.

Wish to have a time-saving and transparent system for your business travel and settlement of related expenses? Discover our Payroll and HR portal that allows you to handle employee travel requests, approvals and reimbursements, with automated data collection, notifications, custom workflows – and beyond.

Discover our cloud solution for business travel
DEFINITION OF BUSINESS TRAVEL
Czech labour contracts define the employee’s place of work. If the employee performs the agreed work in a different location based on the employer’s order, it is considered as business travel.
WORK PERFORMANCE AGREEMENT VS BUSINESS TRAVEL
In case of employment based on work performance agreement, the place of regular work should be stated in the agreement in order to be entitled to business travel allowances. However, it is possible to agree on compensation as part of the work activity even if the place of regular work is not specified.
PRIVATE VEHICLE FOR BUSINESS TRAVEL
Based on the Czech legislation, the employee can use their own motor vehicle during the business travel. In such case, the employee is entitled to a compensation for every 1km and for the fuel, either based on the purchase price or the flat rate set by the decree.
MEAL ALLOWANCE FOR DOMESTIC BUSINESS TRAVEL IN THE CZECH REPUBLIC
For employees in the non-commercial sector, the Czech legislation sets an upper and lower limit on the amount of meal allowance, based on the travel duration within one day. In the commercial sector, the minimum value of meal allowance depends on the travel duration and the upper limit is not specified. However, as a tax-deductible expense, the reimbursed amount cannot exceed the upper limit of the meal allowance in the non-commercial sector.
MEAL ALLOWANCE FOR BUSINESS TRAVEL ABROAD
When traveling abroad (i.e., to a destination outside of the Czech Republic), the right to compensation in a foreign currency arises when the employee crosses the border, their ship departs or arrives to the port or when their plane departs or lands. Meal allowance is provided if the time spent outside the Czech Republic is: 

1. at least 1 hour, 

2. or more than 5 hours, if the employee is entitled to a domestic meal allowance too. 

In case the employee visits 2 or more countries within one calendar day, the meal allowance is compensated for the location where they have spent the longest time. If the employee spent the same amount of time in each country, they are entitled to the highest meal allowance.

REDUCTION OF A MEAL ALLOWANCE
Based on the Czech legislation, the employee is not entitled to a meal allowance if the employer provides free meals. If the employee is provided with breakfast, lunch or dinner, the meal allowance is proportionally reduced for each free meal. If the meal allowance is not reduced by the free meals, even though provided, the amount exceeding the allowance limit counts as a taxable income. However, in the commercial sector employers can provide their employees with meal allowances reduced up to 75% without stating a reason.
ADVANCES FOR MEAL ALLOWANCE
For a business travel abroad, employer in the Czech Republic can provide the employee with financial means in advance in foreign currency. The amount can be up to 40% of the meal allowance and it is subject to taxation when exceeded. However, the Czech law does not oblige the employer to provide pocket money.
ADVANCES FOR BUSINESS TRAVEL COMPENSATION
The Czech legislations specifies 2 options for providing advances: 

1. the employee is provided with an advance up to the expected amount of travel allowances, or 

2. the employee receives a traveler’s check or borrows a company card.

DECLARATION OF EXPENSES AND REFUND OF PAYMENTS
Within 10 working days of returning to the Czech Republic, the employee must submit a written document to the employer for the calculation of compensation and return the unspent advances. The reimbursements must be paid within 10 working days after the date of submission of written document but can be prolonger in exceptional situations.
TRAVEL REIMBURSEMENTS
The employer must reimburse the following items: 

1. Meal allowance (subject to specific conditions)

2. Travel expenses

3. Accommodation expenses

4. Secondary expenses

5. Travel expenses for trips to visit family (if the business travel lasts more than 7 consecutive calendar days, every week of the month, but maximum one month)

These compensations are not subject to self-employment tax.

Are you planning to send your employee on a business trip to or from Romania? In that case, it’s important to pay attention to the business travel legislation in Romania to ensure that you are compliant with all legal regulations. To help you better understand the scope of business travel demands, we’ve created an infographic with a basic overview of definitions, requirements and details.

Wish to have a time-saving and transparent system for your business travel and settlement of related expenses? Discover our Payroll and HR portal that allows you to handle employee travel requests, approvals and reimbursements, with automated data collection, notifications, custom workflows – and beyond.

DURATION OF A BUSINESS TRAVEL

Delegation is the temporary performance by an employee of work or tasks corresponding to the duties of his or her job outside his or her place of work at the employer’s instructions. 

Delegation may be ordered for a maximum of 60 calendar days in any 12-month period and may be extended for successive periods of up to 60 calendar days only with the employee’s agreement. 

According to the Romanian legislation, the calculation of a business travel’s duration is based on the calendar days starting from the departure date and time until the date and time of the return. Each 24-hour period of the trip is considered as one day of business travel.

For domestic travel in Romania, the number of calendar days on which the person is on secondment shall be calculated from the date and time of departure to the date and time of return of the means of transport from and to the place where he/she has his/her permanent place of work, each 24 hours being considered a day of secondment.

In order to benefit from the tax facilities, the employee must be delegated to a locality more than 5 km from the locality where he or she has his or her permanent place of work and the duration of the secondment is at least 12 hours.   

For delegations abroad, the period for which the daily allowance is granted in foreign currency is determined according to the means of transport used, taking into account:

1. the time of take-off of the aircraft, on departure abroad, and the time of landing of the aircraft, on arrival in the country, from and at airports considered crossing points of the State border of Romania;

2. the moment of crossing Romania’s State border crossing points by train or car, both on departure abroad and on return to the country.

In order to benefit from the tax facilities, for time periods not totaling 24 hours, the daily allowance is granted as follows: 50% up to 12 hours and 100% for the period exceeding 12 hours.

THE VEHICLE USED FOR BUSINESS TRAVEL
Expenses for vehicles used exclusively for business purposes are fully deductible, but the company must maintain a log of kilometers driven, including the mileage at the beginning and the end of each trip, to calculate the number of kilometers travelled. The employee should also provide fuel receipts to justify the driven distance. The cost of fuel is based on the average consumption and the employee’s submitted documents. If the fuel is purchased abroad, the cost is converted to Romanian currency based on the National Bank of Romania rate on the date of purchase.
MEAL ALLOWANCE FOR DOMESTIC BUSINESS TRAVEL IN ROMANIA
During domestic business travel, the employee is entitled to daily per diems that cover food and/or other unforeseen expenses, and there is no need to submit additional receipts. The delegation allowance is subject to income tax from wages and social contributions if it exceeds the deductible limit set by the Romanian Tax Code, which is set at RON 57,5/day and in the limit of 3 base salaries corresponding to the job held.

The ceiling of 3 basic salaries corresponding to the post held is calculated separately for each month by dividing the 3 salaries by the number of working days in that month and multiplying the result by the number of days corresponding to each month of the period of delegation/detachment/work in another locality, in the country or abroad. 
MEAL ALLOWANCE FOR BUSINESS TRAVEL ABROAD

Foreign daily allowances are granted according to the amount establishes by law in the destination country of the business travel, and in this situation the Government’s decision must be verified for Romanian personnel sent abroad for temporary assignments. In the EU, the daily allowance is typically EUR 35 per day, with a fiscal maximum of EUR 87.5 per day and within the limit of 3 base salaries corresponding to the job held. 

The ceiling of 3 basic salaries corresponding to the post held is calculated separately for each month by dividing the 3 salaries by the number of working days in that month and multiplying the result by the number of days corresponding to each month of the period of delegation/detachment/work in another locality, in the country or abroad.

The period for which the foreign daily allowance is granted is determined based on the means of transport used, considering when the employee crosses the border, their train or car crosses the border or when their plane departs or lands.

REDUCTION OF A MEAL ALLOWANCE

If the private employer grants and bears all the expenses incurred in connection with business travel, and this is the agreement of the parties, then the employee may no longer be granted a delegation allowance, but in our opinion, this should be stipulated in the individual employment contract, internal regulations, collective agreement and/or other internal procedures of the employer and made known to the employee.

Nevertheless, since the practice is not uniform, in order to avoid possible risks, our recommendation is that private employers to grant employees the delegation allowance and take into account the provisions of the government decisions establishing the conditions for granting the daily allowance for staff in public institutions.

ADVANCES FOR BUSINESS TRAVEL COMPENSATION
The employer can provide the employee with a cash advance, based on which it is necessary to create a Statement of Expenses. The Statement of Expenses must outline the specific costs covered by the advance and be supported by relevant documentation and must include all expenses incurred, including daily subsistence allowance, on return from the trip. If the amount of expenses plus per diem is less than the advance granted then the employee will receive the difference, and if the ratio is reversed, the employee will have to repay the excess.
TRAVEL REIMBURSEMENTS
For example, the employer must reimburse the following items:

1. Travel expenses (travel ticket, plane ticket, taxi, public transport ticket);

2. Accommodation expenses;

3. Incidental expenses (phone fee, fax fee, Internet fee, parking fee, highway fee).

If an employee goes on vacation following a business travel and returns to the workplace, the cost of return transportation is not covered and will not be reimbursed.

Ready to send your Slovak employees on a business trip? Then you should pay extra attention to compliance with the local business travel legislation in Slovakia. In this infographic we provide a basic overview of definitions, requirements and details to help you better understand the scope of work around traveling for business.

Wish to have a transparent and time-saving system for your business travel and expenses? Discover our Payroll and HR portal with a special feature to handle employee travel requests, approval and settlement of expenses, with custom workflows, automated data collection, notifications – and beyond.

Find out more about our cloud solution for business travel
DEFINITION OF BUSINESS TRAVEL
Each employee has their place of work defined in the Slovak employment contract. If the employee performs the agreed work in another place upon the employer’s order, it is considered as travel for business, if the specified conditions are met.
CONSENT FOR BUSINESS TRAVEL
In case the business travel doesn’t arise directly from the nature of the agreed type of the work or the business travel isn’t agreed directly in the employment contract and the employee is supposed to be sent to a business travel outside the municipality, the employee needs to grant consent to the employer.
DURATION OF BUSINESS TRAVEL
The Slovak legislation does not specify a maximum duration for business travel. In general, it lasts for the time strictly needed, e.g., defined as the time from the start of the employee´s business travel to the specified place of work performance, including the work performed by the employee in the given location, and until the time of arrival back to the regular workplace.
PRIVATE VEHICLE FOR BUSINESS TRAVEL
The employee can agree in writing with the employer that they will use their own motor vehicle during the business travel. In such cases, the employee is entitled to compensation for the used-up fuel and basic compensation for every 1km of the ride.
GETTING STARTED WITH POSTING EMPLOYEES
Before sending the employee to a business travel, the employer should specify in writing: the place where the business travel begins, the travel destination (i.e., the place of work), the duration of the business travel, the place where the business travel ends, they type of transportation and other necessary conditions or details of the business travel.
MEAL ALLOWANCE FOR DOMESTIC BUSINESS TRAVEL IN SLOVAKIA
For each calendar day of the business travel, the employee is entitled to a meal allowance. The amount depends on the duration of the business travel, which is divided into time zones:

1. time zone: 5 to 12 hours

2. time zone: 12 to 18 hours

3. time zone: over 18 hours

MEAL ALLOWANCE FOR BUSINESS TRAVEL ABROAD

When traveling abroad (i.e., to a destination outside of Slovakia), the right to compensation arises when the employee crosses the border, their plane departs or arrives, or when their ship departs or arrives to the port. The meal allowance may be compensated in euros or foreign currency.

In case the employee visits 2 or more countries within one calendar day, the meal allowance is compensated for the location where they have spent the longest time. If the employee spent the same amount of time in each country, they are entitled to the highest meal allowance.

Again, the amount of meal allowance depends on the duration of the travel, divided into time zones as stated previously.

REDUCTION OF A MEAL ALLOWANCE

In case the employer provides meals for the employee during the business travel, the meal allowance is reduced, or they are not provided at all. The reduction depends on the type of meal: 

25% reduction when the employer provides breakfast 

40% reduction when the employer provides lunch

35% reduction when the employer provides dinner

This is reduced from the amount of meal allowance for the third time zone, or from the highest agreed amount of allowance.

ADVANCES FOR MEAL ALLOWANCE
For a business travel abroad, the employer can provide the employee with financial means in advance in home or foreign currency. The amount can be up to 40% of the meal allowance, however, it is subject to taxation.
ADVANCES FOR BUSINESS TRAVEL COMPENSATION

When sent abroad for a business travel, the employee is entitled to advance payment for per diems up to the amount of anticipated compensation. This advance can be provided by check, borrowing company bank card or transfer of money to the employee’s bank account. Based on the destination of travel, the advance compensation can be provided in euros or foreign currency.

DECLARATION OF EXPENSES AND REFUND OF PAYMENTS
Within 10 working days from the end of the business travel, the employee must submit a written document to the employer for the calculation of per diems and return the unbilled advance if the employee and the employer didn’t agreed on a longer period (until the end of the following month at the latest). The employer is obliged within 10 working days after the date of submission of written document to prepare the per diems´ summary and satisfy the employee´s claims, if the employee and the employer didn’t agreed on a longer period (until the end of the following month at the latest).
TRAVEL REIMBURSEMENTS
The employer is obliged to reimburse the following items, when sending the employee on a business travel abroad:

1. Meals

2. Travel expenses (train ticket, plane ticket, taxi, public transport ticket, etc.) or reimbursement of expenses for fuel, if the employee is using their own car

3. Accommodation expenses

4. Secondary expenses (e.g., phone fee, internet fee, parking fee, tolls and highway fees, tunnel fees, etc.)

5. Travel expenses for trips to visit family (if the business travel lasts more than 7 consecutive calendar days, every week of the month, but maximum one month)

6. Commercial insurance and mandatory recommended vaccinations for business travel abroad

The employee is obliged to keep an evidence of all the above mentioned expenses and submit the necessary documents to the employer within the above mentioned period.

Are you considering sending one of your Polish employees on a business trip? If so, it is crucial to pay attention to the business travel legislation in Poland and several other important factors to ensure compliance with all legal regulations. To help you understand the requirements and details of business travel, we have created an infographic that provides a basic overview of definitions and necessary steps.

Would you like to streamline and simplify your business travel processes and expense management? Explore our Payroll and HR portal, which offers a time-saving and transparent system for handling employee travel requests, approvals, reimbursements, and more. With automated data collection, notifications, and customizable workflows, our portal goes beyond expectations.

DURATION OF A BUSINESS TRAVEL

The duration of a business travel is calculated based on the number of calendar days from the employee’s departure from their permanent place of work to their return to either their permanent residence or workplace. Each day of the trip accounts for every 24-hour period spent during the trip.

Private VEHICLE FOR BUSINESS TRAVEL
Expenses related to vehicles used exclusively for business purposes are fully reimbursable. However, the company must maintain a logbook of kilometers driven to demonstrate that the car was used solely for economic activities. At the beginning and end of each trip, , the employee must enter in the mileage report the number of kilometers traveled, based on the car’s dashboard reading. The difference between the two numbers represents the distance covered during the trip. The employee is eligible for reimbursement based on the applicable rates determined by law, which consider the vehicle type and engine size.
ACCOMMODATION DURING A BUSINESS TRAVEL

During a multi-day business trip, the employee is entitled for an accommodation allowance. The specific amount is determined for each country where the trip takes place, considering the values established by law. There are three scenarios:

If the employer provides accommodation throughout the entire trip, the employee is not entitled to an allowance.

If the employee arranges and pays for their accommodation, they can submit an invoice for reimbursement. In such cases, the employee is granted an allowance equal to or greater than the amount set by law.

If the employee arranges and pays for their accommodation but doesn’t have an invoice for reimbursement, they are entitled to 25% of the legally established allowance.

MEAL ALLOWANCE FOR DOMESTIC BUSINESS TRAVEL IN POLAND
During a domestic business trip, the employee is entitled to daily per diems to cover increased food expenses. If the employee receives a reimbursement for meals during the trip, they are not eligible for per diems. The amount of the daily allowance depends on two factors: 

1) The duration of the business trip:
Less than 8 hours: No daily per diem. 
Between 8 and 12 hours: 50% of the daily per diem. More than 12 hours: Full daily per diem.

2) The number of days and hours if the trip exceeds one day.
Less than 8 hours: 50% of the daily per diem,
More than 8 hours: Full daily per diem.

For business trips lasting longer than 1 day (24 hours), the employee is entitled to receive daily per diems for each additional day, equivalent to the full daily amount. However, there is an exception regarding the last day of the trip. If the duration of the last day is less than 8 hours, the daily per diem owed is reduced to 50% of the standard per diem.
MEAL ALLOWANCE FOR BUSINESS TRAVEL ABROAD
During an international business trip, the employee is eligible to receive daily per diems that cover additional expenses for food and other small expenses. The specific amount of foreign per diems is determined for each country in which the trip takes place, taking into consideration the legally established values. When a foreign trip involves two or more countries, regulations do not provide a clear guideline for determining the end of the trip from the first country to the next destination. There are several possible scenarios that the employer can consider as the starting point for the journey to the next country:

the moment of completion of the assigned task in the first destination country.
the moment of departing from the territory of the first destination country.
the moment of entering the territory of the second destination country (if it is not adjacent to the first country).
the moment of assuming an official role in the second destination country.

Each of these versions can be argued for its correctness, as they do not affect the overall duration of the foreign business trip, but only the time allocation of its individual segments. However, there may be instances where expenses are reimbursed incorrectly due to variations in travel benefits across different countries. Adjustments in the duration of individual stages of the trip may impact the amount of compensation owed.

The daily allowances are calculated based on the following criteria: 
1) For each full day of the business trip, the employee is entitled to the full per diem amount. 
2) For the last day of the business trip, the allowance depends on the number of hours:
a) If the duration is less than 8 hours, 1/3 of the daily per diem is granted. 
b) If the duration is between 8 and 12 hours, 50% of the daily per diem is granted.
c) If the duration exceeds 12 hours, the full daily per diem is granted.

The conversion of foreign per diems into the employee’s local currency is determined using the average exchange rate provided by the National Bank of Poland valid to the day of payment (i.e., the day before to the employee submitting the settlement documents).
REDUCTION OF A MEAL ALLOWANCE
If the employer provides complimentary meals to the employee, the entitlement to a meal allowance is either reduced or not provided at all. The deduction amount depends on whether it is a domestic or foreign trip and whether the employee received breakfast, lunch, or dinner. The deduction is taken from the meal allowance for time periods exceeding 12 hours or from the highest agreed-upon food allowance. In the case of an employee traveling abroad and being provided with a full meal by the employer, only 75% of the allowance is deducted, while the remaining 25% is allocated for incidental expenses.
TRAVEL REIMBURSEMENTS
These are compensations that the employer must provide to the employee, including:

Compensation for verified travel expenses (such as travel tickets, plane tickets, taxis, public transport tickets). 
Incidental expenses (telephone fees, fax fees, internet usage fees, parking fees, highway fees, tunnel fees).

To cover travel costs by local transportation during a foreign business trip, the employee is entitled to a fixed amount of 10% of the compensation for each day of the trip. However, this lump sum does not apply if the employee used a motor vehicle (business or private) or received free transportation.
ADVANCES FOR BUSINESS TRAVEL COMPENSATION
Employee consent is required to provide advances in Polish currency. If the consent is given, the employee will receive the equivalent of the advance payment in foreign currency, calculated based on the average exchange rate of the zloty against foreign currencies set by the National Bank of Poland on the day of the advance payment.
BUSINESS TRAVEL SETTLEMENT
The employee must submit an invoice for the business trip within 14 days of its completion.

AceON Accelerator, which is the initiative by Accace and Zaka VC, continues to champion startups across Europe and beyond, enhancing their market entry and growth potential. The culmination of our third international acceleration program was celebrated with a grand gala finale in Bratislava.

What were we doing for startups in Spring Accelerator 2024?

The Spring Accelerator 2024 program was meticulously designed to educate startup founders through intensive sessions with industry experts. These sessions covered essential topics such as finance, product development, investment strategies, and the venture capital landscape, equipping founders with a comprehensive understanding of the startup ecosystem.

A key component of the program was the involvement of 29 dedicated mentors who shared their experiences and provided guidance to the participating entrepreneurs. Their mentorship was invaluable, fostering growth and resilience among the startups.

Founding and running a startup is an extremely difficult task that requires a lot of effort and determination, as well as courage and the desire not to give up. However, we are not worried. We saw these qualities in many of the participants in our program, especially those who presented at the gala finale of the last cohort – Demo Day 2024.

We selected the 10 best startups for Demo Day

Demo Day was held on May 23 in the heart of Europe – Bratislava, featured the top 10 startups selected from an initial cohort of 36 teams. These startups presented their innovative solutions to an audience of 80 guests, including entrepreneurs, investors, and senior executives from the local startup community.  

The startups represented a diverse range of regions and sectors from Portugal to Georgia:

1. Cerebria Tech from Slovakia:

Data-driven B2B platform that supports revenue growth. The platform provides comprehensive information about potential customers from more than 10 trusted sources. 

2. Swayme from Poland:

Platform that connects social media users with businesses that offer discounts and incentives for posting and tagging their products or services on Instagram. 

3. Stride from Romania:

Mobile application that replicates features of cognitive behavioral therapy and fosters nicotine-free lives from within.

4. Biterium AI from Georgia:

Bringing preventive and cardiovascular health by cloud-based SaaS solution for healthcare providers and conversational mobile app. 

5. Progalit from Ukraine:

SaMD (Software as a Medical Device) providing automation of treatment and prevention of kidney stones (urolithiasis). 

6. Jusi from Portugal:

Making app development simple by estimating budget and timeline of the development and matching with the right developer. 

7. Cloudcrop from Georgia:

A digital agronomist for all greenhouses resulting in a significant profit growth. 

8. ContextMinds from the Czech Republic:

SaaS start-up saving time and money of marketing agencies, SMEs and content marketers in area of content planning. 

9. Eternity.ac from Poland:

Creating digital clones (B2C, B2B). 

10. Gameblyo from Poland:

Mobile game treating amblyopia – vision and brain-affecting disease. 

The jury and the audience did not agree on the winner

The jury, composed of Ján Kasper (Co-founder & Managing Partner, ZAKA VC), Peter Pašek (Managing Director & Partner, Accace Slovakia) and Andrej Petrus Petrus (Head of Investment Committee, ZAKA VC), faced the challenging task of selecting the winner. Ultimately, Cerebria Tech emerged as the winner, with Cloudcrop securing second place.

It was difficult to choose the best one because there were many very good startups. In the end, Cerebria Tech was declared the winner of the entire Spring Accelerator 2024, with Cloudcrop coming in a close second.

Our 80 guests in the audience also had the opportunity to vote and present the People’s Choice Award to their favorite team.

The Polish startup Swayme won the most votes, charming the audience with both their solution and the cheerful nature of their founders. Congratulations!

We are already preparing the autumn program, which promises to be even better

Accelerator AceON and its team are already looking forward to welcoming more startups in the next program, which will start in autumn 2024. All scalable startups developing a platform, SaaS solution, or online tool that they can quickly launch into the world are encouraged to apply.

Follow AceON’s social networks or sign up for a reminder on the website, and don’t miss your opportunity to become part of the international acceleration program at AceON Accelerator, founded by strong partners Accace and ZAKA VC.

2023 Spring round winners

Developing the ecosystem and supporting start-ups in the form of education and possible investment – with this mission we joined forces with family venture house ZAKA. 17 start-ups went through the first spring batch and the jury selected two winning teams during the final Demo Day pitching.

After almost two months of an intensive program consisting of 14 workshops and dozens of hours of mentoring, 13 teams from Czech and Slovak start-ups made it to the Demo Day. The best pitch deck was decided during the evening at Campus Coworking by a jury composed of  Peter Pašek (Managing Director & Partner of Accace Slovakia and Co-founder of AceON), Ján Kasper (Co-founder & Managing Partner of ZAKA, Co-founder of AceON) and Andrej Petrus (Chief Investment Officer at ZAKA). Together they agreed that not one, but two teams – Wopee.io and Mapheim – deserved to win.

Mapheim is an innovative platform that enables businesses to create interactive maps easily and for a low price. Mapheim connects the physical and digital world and provides a better experience for visitors of fairs, conferences, festivals, or parks.

Wopee.io is an autonomous testing platform using bots to improve effectivity and reduce waste in software development and testing.

The Spring Pre-accelerator was open to idea and pre-seed stage tech start-ups from the Czech Republic and Slovakia during the first year. Next years’ plan is to focus on European countries where AceON wants to support local talents and move them into the global start-up scene.

“At ZAKA VC we are convinced that one of the main criteria for the success of a start-up is a quality team. Central Europe is currently one of the fastest growing start-up regions and we want to contribute to ensuring that the talent in this region gets enough support to launch and grow their business ideas. We are excited about the progress made by the start-ups in the Spring Pre-accelerator, and we are already curious to see what the autumn batch, as well as the next editions of AceON, will bring,” says Ján Kasper, Co-founder & Managing Partner of ZAKA, Co-founder of AceON.

“In the first year of the AceON Accelerator, we confirmed how important it is to have the proper business model and a scalable product. It’s not enough to have an original or innovative idea, you need the personal commitment of a founder with a strong team. We believe our robust mentoring program has helped everyone move forward and validate their idea. We look forward to their progress and will continue to support them,” adds Peter Pašek, Managing Director & Partner of Accace Slovakia and Co-founder of AceON.

The spring round brought together 17 start-ups, 16 mentors and speakers who delivered 14 workshops and provided dozens of hours of 1:1 mentoring. In the spring batch, we covered topics such as finance, marketing, community management, and no-code. Among the mentors were experts such as Peter Pašek (Accace), Andrej Petrus (ZAKA) and Pavlína Louženská (#HolkyzMarketingu).

The program continues with an autumn investment round with applications opening during the summer.

AceON is focused on accelerating technology and software ideas that have the potential to scale. Start-ups can participate in 2 types of programs – the Spring Pre-accelerator, which has already taken place and will take place again next year, and the Autumn Accelerator.

The 2-month Autumn program will be centred on 1:1 mentoring, networking and support based on individual needs, e.g. finalisation of MVP (minimum viable product). A maximum of 5 start-ups will be accepted into the autumn batch based on several criteria focused on potential for success in the global market, scalability or experience and skills of team members. Compared to the spring batch, the Autumn Accelerator also brings investment for selected start-ups. The application process and details of the program will be published on AceON website during the summer.

In our #PeopleOfAccace series, we’ll give you a behind-the-scenes look at Accace through interviews. You will learn how new services or solutions are created with us, who has been at Accace the longest and what positions they have gone through over the years, but above all you will get to know our amazing people. In the current interview we talked with our Office Manager, Mária Hríbiková.

You have been building your career at Accace for more than 11 years. Can you tell us about your beginnings in the company and describe how your work developed during this period?

The truth is that my path with Accace crossed by accident.

I came from Prague to Bratislava, and I was looking for a job that would be somehow related to my studies, so I sent my resume to Accace and came to the interview for the position of receptionist. I garbled the name of the company and pronounced it as axes… The year was 2013. I enjoyed the work. As I got to know the people around me, I felt that I fit more and more into the Accace family. Therefore, it was a relatively natural transition after more than a year to the position of Office Assistant and then Office Manager. In 2017, together with the team, I survived my big test and that was moving to another office space, and after years we are back here, and we continue to move further.

In September, you returned to us after the maternity leave, which you were on for almost 6 years. How do you assess your return after this period? Is it difficult for you to combine family and work life?

I was very much looking forward to the return, at the same time I had and still have respect for it. Six years is not a short period of time at all, and in addition to people, the way of working is also changing. The first few weeks (or months) were honestly crazy for me. Combining all responsibilities would not be such a problem, but child would change everything you had planned. And so there was a lot of work from home and phone calls, where, in addition to talking with the contractor, you deal with family matters at home at the same time. The hardest part is finding your way and not neglecting work duties over family ones and vice versa!

Based on your experience, do you have any advice or tips for other women who are about to return to work after the maternity leave? What would you recommend to them?

Dear women, unfortunately I don’t have any great advice or tips for you, we are all different and have our own priorities and ideas.

Even if one would be – sometimes less is more, for me in almost every life situation.

What do you consider important in your position? Can you describe to us your typical day and what you are currently doing?

For me, my work is about communicating with people, solving situations, correctness of data and, finally, organizing internal events. Currently, preparations are underway for moving, catching up with suppliers. Cooperation with an architect is interesting, because is the creative part of the job. I can’t wait for the new premises myself. Colleagues have something to look forward to!

What do few people (yet) know about you?

Maybe that my vision of the future is a dirty flour apron and a small bakery in a hyped-up place.

Transfer pricing rules have been implemented in Slovak legislation before 2001; however, it has become a hot topic in Slovakia only during past years. Since January 1st, 2015 obligation to keep transfer pricing documentation has applied not only to foreign related parties but to domestic related parties as well. Pursuant to the Slovak tax legislation, all related parties are obliged to prove the method applied for setting the prices of controlled transactions (domestic or cross-border) between related parties and keep a relevant documentation justifying this method. This has caused an increased interest in the topic not only by entrepreneurs, but mainly by tax authorities conducting tax inspections.

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Below, you will find more information about Transfer Pricing rules in Slovakia from Transfer Pricing Team at Accace Slovakia.

Does Slovakia follow the transfer pricing methods outlined in the OECD guideline?

Yes, as a member of the OECD and the EU, Slovakia accepts and uses the OECD transfer pricing Guidelines as a means of interpretation for transfer pricing issues and also takes into account the EU Code of Conduct on Transfer Pricing documentation for associated enterprises. It means that any traditional or other transfer pricing methods in compliance with OECD guidelines can be used while the principle of the best method should apply. If appropriate, other methods may be used too.

The Income Tax Act also refers to the use of the OECD Guidelines. On February 12, 2024, the Ministry of Finance of Slovak republic published in the Financial reports (No. 3/2024) the official Slovak translation of the OECD Guidelines, which was presented by the OECD in January 2022.

The translation of the OECD Guidelines came after several partial versions that were published in the Financial reports over several years (No. 14/1997, No. 20/1999 and No. 3/2002) and were no current due to several updates of the OECD Guidelines.

In addition, the rules for transfer pricing in Slovakia are also regulated in the Income Tax Act and Double Tax Treaties.

What should the transfer pricing documentation contain?

The documentation consists of a general part, which provides an overall picture of the related parties, and specific part, which contains information about the taxpayer and controlled transactions they are engaged in.

The type of the documentation can differ in terms of the minimum required scope, and therefore they can be either complete, basic (simplified) or abridges (extra simplified) documentations. Regardless the type, each documentation shall be prepared separately for each controlled transaction or for each group of aggregated controlled transactions and kept in the respective tax period.

Can documentation be submitted in other than Slovak language?

Yes, transfer pricing documentation can be prepared and submitted in another language. However, the Slovak tax authority may request documentation in the Slovak language.  Slovak tax authorities most often accept transfer pricing documentation in English language.

What are the most common problems of Slovak subjects regarding transfer pricing documentations?

In general, transfer pricing documentation follow the Guidance issued by the Ministry of Finance of Slovak republic, but content-wise they are often missing some fundamental basics, in the case where the company has an obligation to prepared full transfer pricing documentation or demonstrate the correctness of setting the transfer pricing method based on the interval of comparable values. In addition, companies very often incorrectly aggregate transactions into one in documentation, incorrectly assess their functional and risk profile, and then choose the wrong transfer pricing method and choose the wrong comparability indicator considering functional and risk analysis.

When should the documentation be submitted and what are the risks if the documentation is not ready on time?

The deadline for submitting the documentation is 15 days from the date of delivery request from tax office or Financial Directorate of Slovak republic.  This period is not possible to extended. The Income Tax Act gives to tax office the opportunity to ask the taxpayer to submit documentation at any time, not only when opening a tax audit. Therefore, it is necessary to pay attention to the preparation of the documentation already during the tax period and not after the delivery request from tax office. Failure to submit documentation may not only be sanctioned by a penalty but may also lead to the tax officer’s suspicion that the company does not have evidence of compliance with arm’s length principle, and therefore failure to submit documentation may also lead to the opening of the tax audit.

Why is it worthwhile for companies to prepare full documentation?

The obligation to prepare full documentation is determined by the Guidance of the Ministry of Finance for the selected category of companies. However, preparing complete documentation also has advantages for companies that are only required to keep abbreviated or basic documentation. The tax officer may, in accordance with this Guidance and the Slovak tax regulations, request the company to submit additional information serving to prove the compliance of the prices used with the arm’s length principle, even beyond the requirements specified in the Guidance. Pursuant to the Tax Process Code, it can impose a deadline for submitting additional information of at least 8 days, i.e. this period can be even shorter than that given in the Income Tax Act (15 days). In order to avoid time stress when finalizing additional documents in a very short period of time, it is more appropriate to have the full documentation ready. By paying due attention to the preparation of the documentation, the company can ultimately avoid additional administrative costs, and by consistent processing the documentation, company can avoid the opening of a tax audit, which may result in calculation of additional tax.

When is the documentation obligation fulfilled by filling in table “I” in the corporate income tax return?

In the case of controlled transactions, for which, in accordance with the Ministry of Finance’s Guidance, documentation is not prepared in full, basic or abbreviated scope, the documentation obligation of companies is fulfilled by submitting a properly completed corporate income tax return for the relevant FY. That is, if the company is not required to prepare any of the three types of documentation, it is sufficient to fill in table “I Transactions with related companies” in the corporate income tax return. These are mainly cases of transactions that have been assessed as insignificant.

What are the most frequent transactions between related parties and what challenges do the parties face?

The most frequent transactions in Slovakia are usually the manufacturing, distribution and services provided between related parties. The main challenge in those transactions is the determination of the type of manufacturer or distributor, as which company operates as. Also, another challenge is to find the comparable companies in the market, which operates as same type of manufacturer or distributor. Currently, financial transactions such as the provision of intra-group loans, cash-pooling, guarantees and others are coming to the fore. In the case of these transactions, it is a challenge for companies to monitor their ratings.

Are there any trends observed recently?

The main trend in transfer pricing is that tax authorities do not look only if the price agreed between companies are in compliance with the arm’s length principle, but also if the transaction as whole is in compliance with the arm’s length principle. It means, that transaction and all condition of transaction should be determinated same as between independent companies (for example the type of payments, transfer of risk and so on). In addition to the transfer price of the transaction, the tax officers also focus on economic sense of the transactions.

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