Hungary - Miscellaneous -  09/04/10 Civil Code. The new Civil Code provisions, which should have come into effect on 1 May 2010 and 1 January 2011, will not enter into force. In its decision of 26 April 2010, the Hungarian Constitutional ... Read more

Czech Republic - New financial bodies -  08/30/10 The Czech Parliament passed the amendment to the Financial Institutions Act that establishes two new tax administration institutions: the General Financial Directorate and the Specialised Financial Office. The General Financial Directorate (GFØ) will ... Read more

Croatia - VAT regulations -  08/05/10 VAT legislation in Croatia has recently undergone a number of significant changes. Some amendments have been introduced as antirecession measures while others are a part of the EU harmonization process. As an antirecession measure, effective ... Read more

Bulgaria-First VAT referral to the European Court of Justice -  08/03/10 According to the Bulgarian VAT law in force from 1 January 2007, negative monthly VAT results were to be carried forward for the next three months and claimed for refund ... Read more

Belgium - Implementation of the Shareholder Rights Directive -  07/26/10 In March the Belgian government adopted a draft bill implementing the Directive 2007/36/EC on the exercise of certain rights of shareholders in listed companies. The Directive entered into force in August 2007 ... Read more

Belgium - Concept of daily management -  07/19/10 According to a ruling of the Belgian Supreme Court, a claim against a tax decision may be filed by the person vested with the daily management of a company, provided the legal dispute ... Read more

Austria - Miscellaneous -  07/14/10 VAT. At the end of May the Austrian Parliament approved a law making amendments to the tax law. In the course of the debates two changes were introduced that were not considered in the proposals presented ... Read more

Austria - Advance ruling -  07/09/10 A taxpayer, who wishes to evaluate the liability to pay taxes with reference to a certain question of law or a fact can obtain the information needed by consulting the comments of the relevant ... Read more

Romania - Fiscal code -  06/25/10 The Government Decision amending and supplementing the methodology for the application of the Fiscal code provides also for a VAT package. Taxation regime for external services.  A taxable person has a base of economic activity ... Read more

Lithuania - Miscellaneous -  06/24/10 Corporate income tax. The Lithuanian Tax Authorities have released some commentaries on the corporate income tax law. One of the commentaries refers to the way how income and expenses related to interest-free loans should be ... Read more

Hungary - Regulations of the new Civil Code -  06/22/10 In February the Hungarian Parliament adopted amendments to certain financial laws related to the new Civil Code. Corporate income tax. Among others the new Act establishes that from 15 May 2010, the ... Read more

Hungary - Tax Audits -  06/17/10 A directive concerning the 2010 tax audits has been issued, which describes the main areas that will come into focus.  The Tax Authority will take more severe measures against tax planning that takes advantage of ... Read more

Czech Republic - Tax returns of non-residents -  06/14/10 The Ministry of Finance has recently published an announcement on their web site regarding the application of the provisions of an amendment to the Income Tax which enables tax non-residents to file ... Read more

Croatia - New VAT regulations -  06/09/10 The amendments to the VAT Law approved last year and effective as of 1 January 2010 refer also to financial services. Certain services provided by banks and insurance companies which do not have financial ... Read more

Bulgaria - Transfer pricing documentation -  05/30/10 The Bulgarian transfer pricing rules apply to transactions between related parties and are generally in line with the OECD Transfer Pricing Report. In certain cases the rules may be applied to unrelated party transactions ... Read more

Belgium - Exemptions for foreign source income -  05/24/10 The Belgian tax authorities published an administrative circular that clarifies the situations in which Belgium will grant an exemption for foreign-source income (generally all items of income except for income from ... Read more

Austria - Withholding tax liability-  05/17/10 The Ministry of Finance has announced that Austrian companies purchasing advisory services from foreign companies may be subject to withholding taxes. Pursuant to the Austrian tax law, income from commercial or technical services rendered ... Read more

Austria - Additional fiscal burdens for foundations -  05/09/10 Despite the abolition of the inheritance tax and the gift taxation on donations to foundations, in the last two years the basic conditions for private foundations have changed for the worse also ... Read more

Romania - Fiscal code -  04/30/10 A Government Decision amending and supplementing the methodology for the application of the Fiscal code was published on 31 December 2009. These norms provide a clarification to a number of areas. Profit tax. Regarding the ... Read more

Lithuania - Miscellaneous -  04/25/10 Benefits in kind. In a commentary to art. 9 of the Tax Income Act the Tax Authorities state that benefit in kind in 2009 should be recognized essentially in a similar way as it was done ... Read more

Hungary - Taxation of high-value property -  04/19/10 In a decision issued at the end of January the Hungarian Constitutional Court annulled the residential property related provisions  in the framework of the taxation of high-value property (“HVP Act”). The Court stated ... Read more

Czech Republic - Miscellaneous -  04/13/10 Income tax prepayments. According to a information published at the end of January on the website of the Ministry of Finance, prepayments for personal and corporate income tax for 2010 have to be made within ... Read more

Croatia - New VAT regulations -  04/07/10 The amendments made to the VAT Law, which came into force on 1 January 2010, were published in a National Gazette in December 2009. The most important issues are: Deliveries at no charge. The ... Read more

Bulgaria - VAT news -  03/29/10 At the end of November 2009 the Bulgarian Parliament passed a number of amendments to the principal tax laws. The most important changes in the field of VAT are: Deduction of input VAT. The period ... Read more

Belgium - Personal income tax measures -  03/22/10 The most important personal income taxation measures issued by the Belgian government at the end of the year are summarized below. However, with the exception of the benefit in kind for electricity ... Read more

Belgium - Ruling regarding the non-arm's length principle -  03/17/10 According Belgian law, irregular or gratuitous advantages granted by a Belgian resident company to a related non-resident company are imputed to the taxable base of that Belgian company. The taxable base, ... Read more

Austria - Allowance for profits  -  03/11/10 In the framework of the fiscal reform approved by the Austrian Government in February 2009, beginning with 1 January 2009, a new form of allowance for reinvested profits has been introduced. It is considered by ... Read more

Austria - Obligation to keep accounting records  -  03/10/10 The amendment to the Accounting Law establishes that starting in 2010 the threshold for the application of the accounting rules contained in the Entrepreneurial Law is increased from 400,000 to 700,000 euro ... Read more

Romania - Tax relief on reinvested profits  -  02/28/10 A Law regarding the reorganization of some public authorities, the efficiency of public expenses, support for the business environment and compliance with the general agreement with the European Commission and the International ... Read more

Lithuania - Miscellaneous  -  02/23/10 Corporate Income Tax Law. In October 2009, draft amendments to the Corporate Income Tax Law were presented to the Lithuanian Parliament. If the draft legislation is approved, most of the amendments could become effective on 1 ... Read more

Hungary - Changes to the local business tax  -  02/19/10 For the business years starting in 2010, taxpayers will have to submit their local business tax returns and make the payments to the state Tax Authority. However, since the competent ... Read more

Czech Republic - VAT, Changes in 2010 -  02/015/10 As of 1 January 2010, some changes will come into force in relation to VAT. These changes are included in the “budget package” as well as in an amendment to the VAT ... Read more

Croatia - New labour law -  02/06/10 In December 2009, the Croatian Parliament released a new Labour Law which will become effective on 1 January 2010, but provides for a provisional period of 6 months. It brings some important changes, ... Read more

Bulgaria - Patent tax - 01/31/10 Individuals, including sole traders, who are performing certain activities specified in the Local Taxes and Fees Act are subject to the annual patent tax for the income from these activities, providing that the turnover of ... Read more

Belgium - Benefit in kind and company cars - 01/22/10 If a company provides a company car to its employees, directors and business managers and allows them to use the car for private purposes or, more generally, for any purpose not business ... Read more

Belgium - Taxation of outbound dividends - 01/15/10 In November 2009 the European Court of Justice issued a decision in which the Italian tax regime of outbound dividends was found contrary to the principle of free movement of capital. Under certain circumstances, ... Read more

Austria - Group taxation - 01/11/10 According to the Austrian group taxation regime tax losses of group members may be offset against tax profits of other group members. The main condition for this procedure is that there is a participation of more ... Read more

Austria - Crediting of taxes paid abroad - 01/03/10 The Austrian tax administration has implemented some tax reliefs in order to help Austrian companies operating in certain foreign markets. The reliefs refer to taxes the branches of Austrian companies have to ... Read more

Romania - Documents and forms used in the tax audit - 12/23/09 The National Agency for Fiscal Administration Order has issued an order  approving the forms and the content of documents of fiscal inspection for individuals, that have entered into force ... Read more

Lithuania - Company Law - 12/21/09 Amendments to the Company Laws have come into force which seek to ensure equal possibilities to the shareholders of companies listed in the Republic of Lithuania, in other EU Member States and in other states ... Read more

Hungary - Miscellaneous - 12/18/09 Local business tax. In June the Hungarian Parliament passed an amendment to the system of contributions to the public revenues. Under this legislation, from 1 January 2010, the “part resulting in a local business tax base” of ... Read more

Hungary - VAT Package - 12/09/09 Reporting obligations. Hungary has approved a VAT package, which will become effective on 1 January 2010, in order to comply with EU regulations introduced in 2008. In this framework additional reporting obligations will be applied ... Read more

Czech Republic - Miscellaneous - 12/02/09 In the framework of the preparation of the state budget for 2010 the Chamber of Deputies approved a Government bill which now has to be passed by the Senate. The most important changes are the ... Read more

Croatia - New VAT Act - 11/24/09 Croatia’s new VAT Act, which becomes effective on 1 January 2010, introduces significant changes in order to further harmonize Croatian VAT legislation with EU rules. According to the amended rules, foreign enterprises performing taxable ... Read more

Bulgaria - Miscellaneous - 11/18/09 Loans. According to a statement released by the National Revenue Agency (NRA), loans of more than 5000 leva will have to be reported in people's personal income tax declarations for 2010. This rule is included in ... Read more

Belgium - Transfer Pricing - 11/15/09 The Royal Decree of 10 August 2009 has introduced new reporting obligations for intercompany transactions regarding non-arm’s length transactions and off-balance sheet arrangements. Corporations are required to report non-arm’s length transactions with related parties in ... Read more

Austria - New rules applying to private foundations - 11/11/09 During the last years the basic conditions for private foundations have changed following rulings pronounced by the Supreme Court which have caused more red tape and a loss of same advantages. While ... Read more

Austria - VAT, filing deadlines - 11/05/09 Entrepreneurs who are delivering goods to other entrepreneurs in EU countries are obliged to file a recapitulative statement regarding intracomunitary supplies. Since 2004 this statement can be filed electronically. In 2006 filing of the ... Read more

Romania - Changes to the Fiscal Procedures - 11/03/09 The Government Emergency Ordinance (GEO) no. 46/2009 has introduced some measures regarding the improvement of fiscal procedures and the reduction of fiscal evasion. Taxpayers’ inactivity. Taxpayers are declared inactive if one of ... Read more

Lithuania - Miscellaneous - 10/28/09 Corporate income tax. The rules on the advance corporate income tax return have been amended. Under the new version of the rules, as from the financial year started in 2009, companies will be granted the possibility ... Read more

Hungary - Amendments to the corporate income tax in 2009 - 10/26/09 At the end of June the Hungarian Parliament passed a law on tax amendments. The most important measures will become effective on 1 January 2010. The corporate income tax ... Read more

Czech Republic - Amendments to the Income Taxes Act - 10/23/09 The Czech Parliament approved amendments to the Income Taxes Act, the Administration of Taxes Act, and the new Tax Administration Code. The most important news of the new legislation is ... Read more

Croatia - Liberalization of Foreign Financial Transactions - 10/16/09 The abolishment of the currently imposed limitations for residents related to foreign financial transactions and the liberalization enabling residents to directly invest, transfer and deposit funds abroad will be effective as follows: ... Read more

Bulgaria - Excise duties - 10/07/09 The new Directive 2008/118/EC, which replaces Directive 92/12/EEC on the movement of excise goods, will enter into force in April 2010 and should be transposed into the Bulgarian national legislation by the end of 2009. ... Read more

Belgium - Professional withholding tax payment - 10/01/09 The Belgian Federal Government has recently decided to put in place a series of fiscal measures with the aim to stimulate the Belgian economy. Several incentives are related to the withholding taxes to be ... Read more

Belgium - Circular on participation exemption issued - 09/28/09 In May the Belgian government accepted a decision issued by the European Court of Justice (ECJ) in which the Court stated that the Belgian dividends received deduction (DRD) regime is incompatible with ... Read more

Austria - Taxation of the income of professional persons - 09/23/09 Many professional persons offer their service non as sole traders but through a private limited company especially established for this purpose. If the profits realized are kept within the company, for ... Read more

Austria - Allowance on profits - 09/17/09 In the framework of the fiscal reform 2009 a new allowance on profits has been introduced which, compared to the allowance on reinvested profits, has brought an extension of the scope of application. The ... Read more

Romania  - Minimum corporate tax - 09/10/09 The Government of Romania has approved the decision no. 488 which was issued for the application of the emergency ordinance no. 34 amending the Fiscal Code in relation to profit tax, micro-companies tax and ... Read more

Lithuania - Miscellaneous  - 09/07/09 Tax payments. Amendments to the rules on the postponement of overdue tax payments have been approved. According to the changes, a request of postponement has to be submitted to the Tax Authorities not earlier than 20 ... Read more

Hungary - Expected changes in local business tax  - 09/03/09 According to the proposed change in the local business tax regulations from 2010 an exemption from this tax will be granted for the part in the local business tax base ... Read more

Czech Republic - Anti-crisis tax measures - 09/02/09 Besides an amendment to the Income Taxes Act, on 15 May 2009, the Chamber of Depu¬ties of the Parliament of the Czech Republic approved also amendments to the Act on Social Security ... Read more

Czech Republic - Tax Law Amendments - 09/01/09 On 15 May 2009, the Chamber of Depu¬ties of the Parliament of the Czech Republic approved an amend¬ment to the Income Taxes Act, which still needs to be approved by the Senate and ... Read more

Croatia - New Law on Obligatory Insurance Contributions - 07/29/09 With the new law on obligatory insurance contributions, which has become effective as of 1 January 2009, a series of changes has been introduced. The most important amendments refer to ... Read more

Bulgaria - Real Estate Taxation 2009 - 07/21/09 On 1 January 2009 amendments to the local taxes and fees act where introduced which might have a significant impact on the taxation of real estate in Bulgaria. Determination of the tax value ... Read more

Belgium - Various new rules - 07/17/09 Reimbursement of costs. During their foreign business trips employees or managers have to incur numerous small expenses for which it is not always possible to obtain receipts. The tax administration and the National Social ... Read more

Austria - Dividend payments - 07/08/09 If an Austrian company receives dividends from an Austrian subsidiary, the dividends are tax exempt irrespective of the entity of the holding. If, however, the dividends are paid by a foreign company in which the Austrian ... Read more

Austria - Problems related to foreign subsidiaries - 07/03/09 The introduction of  the group taxation scheme in 2005 has made it possible for Austrian parent companies to set off the losses of their foreign subsidiaries against the profits of the parent ... Read more

Romania - Amendments to the Fiscal Code - 06/27/09 An Ordinance issued in April provides for a number of changes to the Fiscal code regarding profit tax, income tax, micro-companies tax and value added tax. It changes the Fiscal Procedure ... Read more

Lithuania - Miscellaneous - 06/24/09 Tax return. An Order of the Head of the Tax Authorities approved the amended corporate income tax return and its completion rules. The rules state that advance payments of corporate income tax for the first ... Read more

Hungary - Tax package - 06/17/09 The Hungarian Prime Minister has recently announced a tax package which decreases the burden of the taxes levied on employment. Personal income tax. According to the intention of the Government the present system of income ... Read more

Czech - Miscellaneous - 06/10/09 Income tax advance payments. In the framework of the measures adopted to combat the financial crisis, the Ministry of Finance has decided to cancel the obligation to pay  income tax advances for the year 2009. This ... Read more

Croatia - New General Tax Law - 06/04/09 On 1 January 2009 the new General Tax Law has become effective in order to harmonize the Croatian tax system with EU requirements.  The most important amendments include: The general definition of related ... Read more

Bulgaria - Changes in the International Tax Legislation - 05/31/09 As of 1 January 2009 several amendments to the international tax law provisions of the Bulgarian Corporate Income Tax Act have been introduced. Dividends distributed to companies which are tax resident ... Read more

Belgium - Miscellaneous - 05/28/09 VAT rates reduced in real estate sector The Belgian government has decided to reduce the VAT rate for costs incurred on the construction of new private housing from 21% to 6%. This measure is in ... Read more

Belgium - Notional interest deduction regime - 05/21/09 The European Commission is challenging Belgium’s notional interest deduction regime claiming that it violates the free movement of capital and the freedom of establishment.  The notional interest deduction, which became effective as ... Read more

Austria - VAT - 05/18/09 At the beginning of 2008, the EU countries had reached an agreement on several fundamental changes to the VAT directive, which will enter into force in Austria on January 1, 2010. A draft law has already ... Read more

Austria - Banking secrecy- 05/10/09 In the framework of the ongoing debate on the Austrian banking secret it sometimes goes unnoted that the other EU countries, with the exception of Belgium and Luxembourg, are already closely following the European directive on ... Read more

Italy - Conference - 04/28/09 The Pasut AG was rapporteur at the conference sponsored by the "International Fiscal Counsels Onlus", entitled "A cross-border merger of limited liability company", held on 11/04/08 at the headquarters of the Confindustria Udine, which was attended ... Read more

Italy - Conference  in Padova- 04/28/09 The "PASUT AG" was rapporteur at the conference sponsored by the University of Padova, Faculty of Political Sciences, Department of International Studies, held on 26 and 27 February 2009 in Padova, Palazzo del Bo, ... Read more

Romania - Changes to the fiscal code - 04/26/09 Tax returns. According to recent amendments to the Fiscal Code, from 1 January 2009, a special reduction of 5% of tax liabilities will be granted to taxpayers, both legal entities and ... Read more

Lithuania - Amendments to the Corporate Income Tax Act - 04/21/09 Tax rate. The main amendment to the Law on Corporate Income Tax introduced is the increase of the standard tax rate from 15% to 20% which is applied to the ... Read more

Hungary - New rules for 2009 - 04/03/09 Local taxes. The 90% tax base deduction for the activity of foreign entities is replaced by a 100% exemption, provided the conditions are met. The limit of revenue for applying the simplified tax ... Read more

Czech Republic - Changes to the Income Tax Act - 03/31/09 The amendment to the Income Tax Act has introduced a number of changes for employers regarding tax and social security payments. Furthermore, on 1 January 2009 the new Sickness ... Read more

Croatia-New identification number for legal entities and individuals-03/27/09 From 1 January 2009, the personal identification number for legal entities and individuals (OIB) is being implemented and applied in the territory of the Republic of Croatia as a permanent identification number ... Read more

Bulgaria - Amendments to the VAT Act - 03/18/09 As of January 1, 2009, some amendments to the VAT Act have come in force which provide for more favourable reverse charge rules. The taxpayer is entitled to VAT credits for a ... Read more

Belgium - Miscellaneous - 03/16/09 VAT Refund. In order to provide for an economic stimulus, the Belgian government has decided to broaden the cases where a VAT taxpayer can claim back outstanding VAT credits on a monthly basis. This new measure has ... Read more

Belgium - Tax reforms introduced in 2008 - 03/11/09 Cross-border mergers: The European Directive on Cross-Border Mergers has finally been implemented into Belgian law. The bill passed by the Belgian Parliament last November introduces a tax-neutral regime for reorganizations where the ... Read more

Austria - Miscellaneous - 03/09/09 Invoices. In order to be able to claim the deduction on input VAT, it is necessary to have an invoice issued according to the VAT law. Invoices considered to fulfill these prerequisites are also invoices ... Read more

Austria - Fiscal reforms - 03/04/09 The coalition governing Austria has defined in its program the main principles of the fiscal reforms, which should be approved in April with retroactive effect as of January 1, 2009. According to the provisions envisaged, ... Read more

Romania - Miscellaneous - 03/03/09 VAT. An order has been issued approving the new model and content of the special VAT return (form 301) and the instructions for completing the return. According to the changes introduced by the order, persons who are ... Read more

Lithuania - Miscellaneous - 03/02/09 VAT. A supplement to the official commentary on the VAT Law was made according to which services related to the development of “soft” skills (for example seminars) should be treated ad vocational training and therefore be ... Read more

Hungary - Proposed tax changes - 02/27/09 Robin Hood Tax. The Hungarian Parliament passed the Act on Energy Suppliers’ Income Tax, generally known as the Robin Hood Tax, which will come into force on 1 January 2009. Taxable persons are the ... Read more

Czech Republic - VAT issues - 02/23/09 VAT form. The Ministry of Finance has introduced a new VAT return form that starts to apply from January 2009. The new form will have to be used starting with the first VAT ... Read more

Croatia - Opinion expressed by the Tax Authorities - 02/20/09 As far as the increase in share capital of a company is concerned, the Tax Authorities are of the opinion that a taxpayer can decrease its corporate income tax base by ... Read more

Bulgaria - Effects of the introduction of a flat tax - 02/18/09 Since the beginning of 2008, the flat tax regime on income at a rate of 10%  has replaced the previous system with different tax rates ranging between 20 and ... Read more

Belgium - Program Law  - 02/16/09 At the end of the year the Belgian government usually prepares a Draft Bill to introduce several new tax measures regarding different subjects. Among the changes proposed this year in the field of corporate income tax, ... Read more

Belgium - Storage of invoices  - 02/11/09 Taxpayers have to make sure that all invoices issued and received are stored, in principle, for a period of seven years. Since January 2006, it is also possible to store invoices received or ... Read more

Austria - VAT aspects related to holding companies - 02/10/09 Pure holding companies, limiting themselves to the purchase and the holding of equity participations, are not considered to be entrepreneurs according to the Value Added Tax Act because they do ... Read more

Austria - Electronic system of filing of VAT refunding - 02/02/09 The claim for refund of input VAT paid abroad can sometimes be refused completely or partially. The reasons are manifold and range from non-compliance with a deadline, errors contained in ... Read more

Romania - Environment fund contributions - 01/31/09 The provisions of an Emergency Ordinance of 2005 regarding the Environment Fund were amended and completed as follows. Individuals and legal entities are subject to an environment fund contribution of 3% of the ... Read more

Lithuania - Tax inspections - 01/30/09 In August 2008 an Order of the Head of the Tax Authorities was published regarding the amendments to the rules on performing tax reviews and on processing their results. Following the amendment, Tax Authorities will ... Read more

Hungary- Proposed changes to the tax law - 01/29/09 The Ministry of Finance has published the modifications to the tax and social contribution regulations it intends to submit to the Government. The most significant changes in the field of the ... Read more

Czech Republich - Amendment to the VAT Law - 01/28/09 At the end of August comprehensive VAT amendments have been published which will enter into force on January 2009. Among the most important changes is the new definition of turnover ... Read more

Croatia - Transfer pricing - 01/27/09 The corporate profit tax law stipulates that all business transactions between related parties, of which one is a resident and the other is non-resident, must be effected at arm’s length, that is, at “fair ... Read more

Bulgaria - Miscellaneous - 01/25/09 Local Taxes and Fees Act. At the beginning of the year, some amendments to the Local taxes and fee act (LFTA) entered into force aiming mainly to facilitate the fiscal decentralisation. No changes have been ... Read more

Belgium - Customs related issues - 01/24/09 In December 2007, the Belgian customs authorities decided that weekly or monthly declaration authorization holders have to provide the detailed data regarding the weekly or monthly declarations to the authorities in the following ... Read more

Belgium - Wage tax related questions - 01/23/09 Transfer of the operating base. In the event an employer should decide to transfer the operating base of his activity, the indemnities paid to the workers in compensation for the supplementary travel ... Read more

Austria - Unemployment insurance for self-employed persons - 01/21/09 As from 2009, also self-employed individuals will be able to avail themselves of a new model of unemployment insurance. The self-employed person can declare to join the unemployment insurance on the basis ... Read more

Romania - Changes to the Fiscal Code - 12/23/08 The Government has passed an emergency ordinance making changes to the Fiscal Codes, mainly in order to bring Romanian tax legislation into line with EU requirements following a recent warning by the ... Read more

Austria - Miscellaneous - 01/20/09 Tax on motor vehicles. The outgoing Government has presented an amendment on the tax on motor vehicles with the aim of rendering taxation more simple and modern, on the one hand, and to adapt it to ... Read more

Lithuania - Miscellaneous - 12/23/08 Company law. On July 1st, some amendments to the Company Law have entered into force. One of the most important changes is the simplification of the provisions of the law on reduction of the share capital ... Read more

Hungary - Transfer Pricing - 12/23/08 Hungary introduced transfer pricing legislation in 1992 in Section 18 of the Corporate Income Tax Act. In the meantime a series of minor amendments have followed. The law states that if associated enterprises use prices ... Read more

Romania - Changes to the Fiscal Code - 12/23/08 The Government has passed an emergency ordinance making changes to the Fiscal Codes, mainly in order to bring Romanian tax legislation into line with EU requirements following a recent warning by the ... Read more

Czech Republic - Reform of income taxes - 12/17/08 At the end of June, the Czech government approved an amendment to the Income Tax Act which will be further discussed by the Parliament. One of the most important changes compared to ... Read more

Croatia - Accounting - 12/13/08 The accounting and reporting rules applicable in Croatia are defined by the Accounting Law. It requires for all companies classified as large, listed companies or companies that are in the process of being listed, the preparation ... Read more

Bulgaria - Amendments to the Corporate Income Tax Act - 11/29/08 The amendments to the Bulgarian Corporate Income Tax Act, effective from the beginning of the year, bring also some new rules for business combinations and tax incentives. Business combinations. ... Read more

Belgium - Programme Law, tax regime on copyright income - 11/22/08 The Program Law published at the beginning of June contains some income tax amendments. Among the most important amendments is an increase in the tax free allowance for low ... Read more

Belgium - Miscellaneous - 11/19/08 VAT filing. The Ministry of Finance has announced that as of 1 July 2008, all taxpayers filing monthly VAT returns are obliged to file their Annual Sales Listing (ASL) and European Sales Listing (ESL) electronically. ... Read more

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 ... 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”, ... 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 ... 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 ... 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 ... 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 ... 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 ... 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 ... 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 ... 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 ... 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 - 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

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

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

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

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