Austria - Treatment of foreign dividends - 11/13/08 Previously, based on the participation exemption and only in case of a participation of more than 10% and a detention period of at least one year, foreign dividends were tax exempt in Austria. On ... Read more

Austria - Combating evasion of social security contributions - 11/06/08 The new rules on liability in the framework of the general social security law have been published in the official gazette. After the introduction of the so-called “reverse charge system”, set up in ... Read more

Romania - VAT documentation - 11/01/08 The Ministry of Economy and Finance has issued guidelines regarding the completion of Value Added Tax records and has published model records in the Official Gazette. In May these models were updated in order to reflect the ... Read more

Lithuania - Changes to the corporate income tax - 10/27/08 In April 2008, some amendments to the Act on the corporate income tax have been approved, that will enter into force in January 2009. Dividends received from the shares of other companies, owned ... Read more

Hungary - Low equity positions - 10/16/08 During the annual statutory audit the necessity may arise to implement measures in order  solve a low equity position if losses have reduced the equity or turned it into negative results. These measures could ... Read more

Czech Republic - Proposed tax reform package - 10/11/08 The Minister of Finance has presented a draft of a tax reform package for public discussion. Comments and proposals that should be submitted will then be taken into account in the final ... Read more

Croatia - Inheritance and gift tax - 10/06/08 A legal entity or a natural person, who inherits or receives assets without any compensation, is subject to the inheritance and gift tax. In the event the heir renounces the inheritance or cedes ... Read more

Romania - Miscellaneous - 10/01/08 Transfer pricing file An order issued in February has approved the content of the transfer pricing documentation file. The order has then been supplemented by the transfer pricing guidelines of the OECD and the code of ... Read more

Lithuania - Miscellaneous - 09/22/08 Taxation of dividends. The Lithuanian Government proposed a draft amendment to the Corporate Tax Income Law following an infringement procedure started against the country. Currently dividends paid to foreign recipients are taxed more heavily than dividends ... Read more

Hungary - Tax audits - 09/11/08 In 2008 the Tax Authority in 2008 intends in general to place greater emphasis on preventing tax evasion, on risk analysis and on rapid reaction to potential violations. One of the special target groups ... Read more

Bulgaria - Amendments to the Corporate Income Tax Act - 08/16/08 The amendments to the Bulgarian Corporate Income Tax Act entered into force at the beginning of the year relax, among others, the requirements for tax deductibility of certain business ... Read more

Belgium - New Circular Letter - 07/31/08 The Belgian government has recently officially stated that it has no intention to amend  the notional interest deduction regime despite the criticism of widespread abuse. Therefore, Belgian companies and Belgian branches of foreign ... Read more

Belgium - Cash bonuses - 07/28/08 While Belgium has granted for example special tax regimes for foreign executives in order to attract foreign capital, relatively few incentives have been reserved to Belgian nationals who are subject to an average burden that ... Read more

Austria - Miscellaneous  - 07/18/08 Wage tax. If an employee residing in Austria works abroad, under certain circumstances the treaties to avoid double taxation stipulated by Austria confer to the foreign State, where the employee is performing his/her activity, the right ... Read more

Austria - Debate  on a new form of capital gains tax  - 07/10/08 In the framework of the ongoing debate regarding the fiscal reform, the Government has raised the question of the introduction of a new capital gains tax. However, ... Read more

Czech Republic - Miscellaneous - 07/02/08 Intangible assets. A decree on accounting, which entered into force at the beginning of the year, contains an exhaustive list of items that cannot be considered intangible assets. Until the end of 2007, the ... Read more

Croatia - Corporate income tax- 06/27/08 According to the Croatian Corporate Income Tax Act, the tax rate is 20%. The deadline for filing corporate income tax returns is four months after the period for which the profit tax is assessed. The tax liability ... Read more

Bulgaria - Amendments to the Corporate Income Tax Act - 06/25/08 At the beginning of the year some amendments to the Bulgarian Corporate Income Tax Act entered into force. They aim chiefly to clarify existing tax provisions regarding certain issues. In the ... Read more

Belgium - Miscellaneous - 06/13/08 Interest paid to a non-resident director company. The Belgian legislation according to which certain interest payments made to a director, which is a foreign company, are to be classified as dividends, whereas such interest payments are not reclassified as ... Read more

Belgium - Company cars and business travels - 06/09/08 Company cars. According to the Belgian Tax Authorities, an individual’s “fixed workplace” is the place where the individual is present for at least 40 days during a taxable period. This definition is crucial in order ... Read more

Austria - VAT related questions - 05/29/08 Provisional return. As of January 2008, a new form has to be used in order to file the provisional VAT return. The most significant changes compared to the previous form regards the introduction of two ... Read more

Austria - Gift and inheritance tax - 05/29/08 After the Constitutional Court had found the gift and inheritance tax not compatible with the law, as of August of this year, the two taxes will be abolished. In order to be able to control the ... Read more

Romania - Social security and individual taxation issues - 05/14/08 An amendment to the Law on the State Budget published at the end of December establishes a reduction of the contribution to the Health Fund to be paid by the employer ... Read more

Lithuania- 05/08/08 Cross-border mergers. The Law on cross-border mergers of Lithuanian limited liability companies adopted in order to implement the respective European directive 2005/56/EC, came into force on 1 January 2008. The Law regulates cross-border mergers of companies which have ... Read more

Hungary - Miscellaneous - 05/01/08 Product fee. On 1 January 2008 significant changes to the environmental product fee legislation came into effect. Companies subject to the product fee have to register with the Customs Authority within 15 days from the ... Read more

Czech Republic - Amendments to the accounting act - 04/24/08 At the end of December, some amendments to the implementation of regulations of the Accounting Act were published. The major part of the amended provisions applies to financial statements related to ... Read more

Croatia - VAT Refund - 04/17/08 A purchaser, who  is a foreign national and who in the framework of personal passenger traffic exports goods bought in Croatia may claim the refund of VAT for the goods exported provided the following ... Read more

Bulgaria- Proposed tax changes- 04/15/08 Usually the Bulgarian Parliament discusses about 350 proposed laws during a year, that is 25 to 30 every month. During the last month of every year there are more proposed draft bills than the monthly ... Read more

Belgium - Miscellaneous- 04/04/08 VAT. From 1 January 2008, the Belgian VAT number, which is also the company number, is composed of ten digits instead of nine. All existing company numbers will start with a zero. This new 10-digit number ... Read more

Belgium - Pharmaceutical tax - 03/31/08 The European Commission has decided not to oppose a series of tax reductions introduced by Belgium as part of the reform of the tax paid by pharmaceutical companies on sales of reimbursed medicines, which could ... Read more

Austria - Allowance for invested profits - 03/21/08 Starting with the imposition regarding the year 2007, the allowance related to invested profits will be applied to all natural persons (proportionally in the case of co-propriety of private companies) who determine ... Read more

Austria - News regarding annual accounts- 03/15/08 In 2008 the EU member countries will have to transpose two directives regarding annual accounts and statuary audits of annual accounts. The new legislation will refer to companies that are obliged to prepare annual ... Read more

Romania - Late payments, VAT - 03/07/08 A decree has been issued in order to implement a directive of the European Council regarding the fight against late payments in commercial transactions. The Decree refers to specific, liquid and enforceable debts representing ... Read more

Lithuania: Law on Tax Administration - 02/28/08 In summer a new version of the Law on Tax Administration has come into force. Pursuant to the new provisions, officials of the central tax administrator performing their activity may take photos and ... Read more

Hungary - 02/21/08 Amendments to the Corporate Income Tax Some amendments to the Corporate Income Tax Law will enter into force on 1 January 2008. Among these changes the following rules are to be found. Controlled foreign company. As of ... Read more

Czech Republic - New thin -capitalisation rules -02/14/08  The tax reform envisaged by the Czech legislator also comprises important changes to the thin-capitalisation rules, which will become effective from the beginning of next year. At the end of October, the ... Read more

Croatia - 02/07/2008   Croatia: Foreign Investments The Constitution, the Company Law, the Corporate Profit Tax Law and the new Law on the Promotion of Investment, along with other legislative provisions, regulate foreign investment in Croatia, which is highly welcome. ... Read more

Bulgaria - 01/31/2008   General rules on corporate income taxation Corporate income tax is calculated based on the accounting profit after adjustments for tax purposes. The Bulgarian Corporate Income Tax Act established a 10% tax rate applicable for the year ... Read more

Belgio - 01/24/2008   Amendment to the rules on Belgian Coordination Centres The Coordination Centre regime is a favourable tax regime established for Belgian entities or  permanent establishments belonging to an international group of  companies, that perform certain intra-group financing ... Read more

Belgio - 01/17/2008   Circular letter on VAT grouping In April 2007 the Royal Decree regarding VAT grouping has entered into force but only at the beginning of December the circular letter on the general principles ruling a VAT group ... Read more

Austria - 01/10/2008  Changes in the framework of hidden reserves Until 2000, gains realized by private law foundations by selling holdings in corporations were tax exempt. Only in the event of a sale to beneficiaries, the tax rate of 25% ... Read more

Austria - 01/03/2008  Limits to the possibility of amortization of goodwill Parallel to the introduction of group taxation, the possibility of the amortization of goodwill when acquiring a holding in a managing company subject to unrestricted taxation was introduced. In ... Read more

Bulgaria - Flat tax on personal income - 11/15/2007 At the end of July the Bulgarian Government announced its plan to introduce a 10% flat tax on personal income in 2008, following the introduction of a 10% flat corporate tax ... Read more

Austria - Classification of foreign types of companies - 11/08/2007 For tax purposes, an Austrian corporation, which has subsidiary companies abroad, is often confronted with the question if the latter is to be considered a corporation or partnership. This classification ... Read more

Czech Republic - Miscellaneous - 11/02/2007 Ecological taxes. In the framework of the budget reform package, three new indirect taxes will be introduced as of 1 January 2008, i.e. electricity tax, gas tax and solid fuels tax. On the whole these three ... Read more

Belgium - Miscellaneous - 10/25/2007 Notion of employer. For a long time, the definition of “employer” has been irrelevant for tax purposes because the Belgian tax authorities often considered the company that assumed the labor costs to be the employer, under ... Read more

Belgium - The dividends received deduction rules - 10/18/2007 The European Parent-Subsidiary Directive demands that EU member states introduce rules into their national legislation providing that dividends paid by subsidiaries to their parent companies within the European Union be exempt ... Read more

Hungary - Proposed changes to tax laws - 10/11/2007 On 1 January 2008, a high number of tax regulations will change. Below some of main changes proposed are indicated. In the field of corporate income tax in addition to assets ... Read more

Lithuania - Miscellaneous - 10/04/2007 VAT. The Government of the Republic of Lithuania has introduced an amendment regarding the application of the preferential VAT tax rate of 5%.  It is applied to the import, purchase from other European Union Member ... Read more

Romania - Social security questions - 09/27/2007 New provisions have been introduced by an ordinance issued by the Ministry of Labour regarding the public system of pensions and other social insurance benefits. According to these rules, employers, independently of being ... Read more

Austria - Fiscal treatment of travel expenses - 09/20/2007 As of 1 January 2008, a more restrictive handling of business trips will be introduced, at least as far as the reimbursement of travel expenses is concerned. From this moment on, ... Read more

Croatia - Personal income tax - 09/13/2007 In the framework of the Personal Income Tax Act some new rules have been introduced as of 2007. The payment of separation allowances, that is the amount paid to individuals following the separation ... Read more

Belgium - Miscellanous - 09/06/2007 Taxation of reserves. In an attempt to encourage Belgian companies to reinvest or distribute old tax-exempt reserves, a bill was approved introducing an optional regime that allows companies to enjoy a reduced tax rate for ... Read more

Croatia - Accounting - 08/30/2007 The Croatian Accounting Act states that large entrepreneurs and entrepreneurs whose securities are listed on the stock exchange must keep records and prepare financial statements according to the principles of the law and to International ... Read more

Hungary - Minimum tax - 07/19/2007 The so-called minimum tax, introduced in the framework of a tax package adopted in the summer of 2006 and which entered into force on 1 January 2007, established that if the corporate income tax ... Read more

Czech Republic - Tax reform - 07/05/2007 One of the most relevant changes to the income tax act presented by the Government to Parliament is that the tax rate for legal entities will be reduced to 22% in 2008, to ... Read more

Czech Republic - Tax reform - 06/28/2007 At the beginning of June, the Chamber of Deputies of the Czech Parliament has discussed the amendments proposed by the Government to the Income Tax Act. The reform envisages the introduction of a ... Read more

Romania - VAT questions - 06/07/2007 VAT refunds. In April the Ministry of Finance has issued an order indicating the procedures for non-resident companies established in other Member States or outside the EU. In order to benefit from the VAT ... Read more

Austria - Legal impact of the law to combat fraud - 05/30/2007 On January 1, 2007, a new law on combating fraud has entered into force. Under the provisions of this law, each entrepreneur is obliged to enter into his/her ... Read more

Austria - Business register - 05/23/2007 Letterhead. Among the new rules introduced by the business register, which has came into force on January 1 of the current year, there is also a special obligation of information. On their letterheads or ... Read more

Lithuania - Miscellanous - 04/24/07 VAT refund. At the end of March 2007, an order has come into force supplementing the rules for completion of the form which has to be used by a foreign taxable person‘s in order to ... Read more

Czech Republic - VAT - 03/27/2007 The Ministry of Finance has published an information regarding the reduced VAT rate of 5% for buildings and apartments after 31 December 2007, when the exception negotiated between the Czech Republic and the EU ... Read more

Austria - Transmission of balance sheets - 03/16/2007 Since tax assessment 2003, income and corporate income tax returns have to be submitted electronically to the tax office, while the annexes (balance sheets, auditors’ reviews etc.) have to be filed in ... Read more

Lithuania - Amendments to the Corporate Income Tax Law - 03/07/2007 An amendment to the Corporate Income Tax Law came into effect. According to the amendment, capital gains derived from the transfer of shares in a company registered in the ... Read more

Hungary - Tax concessions related to electronic tax returns - 02/16/2007 If a company is obliged to file tax returns and provide data electronically, and its revenue is not more than HUF 4 million a year, corporate tax is reduced ... Read more

Czech Republic - Subsidies for job creation and training - 02/12/2007 In an effort to further promote investments in regions characterized by a high unemployment rate, the government has decided to extend its subsidies programme for job creation and training ... Read more

Bulgaria - Proposal of changes in the VAT Act - 02/02/2007 The Government has proposed changes to the VAT Act with the aim to curb VAT frauds. Another objective of the new VAT Act is to reduce customs and tax ... Read more

Croatia - Starting up a business - 02/02/2007 In order to start a company in Croatia it is necessary to register with the Commercial Court, the Central Bureau of Statistics, the Tax Administration, the Customs Administration (if the company intends ... Read more

Belgium - Benefits for employees - 01/18/2007 Pursuant to a Royal Decree, employers may grant their employees sport and culture vouchers for a maximum of 100 euro per year, which may be divided in a series of vouchers of lower ... Read more

Austria - Fiscal projects pursued by the new Government - 01/12/2007 In the program dedicated to the coming four years, the new Government has expressed itself in very general terms of the fiscal reform. Based on several declarations made by ... Read more

Czech Republic - Miscellaneous - 01/08/2007 Sickness Insurance On 1 January 2007, the new Law on Sickness Insurance has come into effect which contains also new rules regarding sickness benefits for employees. For the first 14 days of illness, sickness ... Read more

Hungary - Proposed tax changes - 01/08/2007 Tax exemption of capital gain of investments The new regulations in this field, that have become effective on January 1, 2007, will entail tax exemption of the capital gain realized on certain investments. ... Read more

Austria - Miscellaneous - 01/08/2007 Procedural requirements The procedural requirements applied to bookkeeping and accounting receipts have been tightened, mainly in order to facilitate the fight against tax frauds and the implementation of the controlling software used by the Tax ... Read more