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 transferred free of charge, services supplied or received without consideration to qualify as reductions from the tax base, and items relating to provisions, ordinary depreciation, impairment loss, bad debts and the development reserve will be changed.
Items relating to provisions, ordinary depreciation and impairment loss will be modified in connection with additions to the tax base. New conditions will be introduced applicable to preferred corporate restructuring.  A more precise wording for the rules on loss carry-forward is expected. The amount of the pre-tax profits, that can be posted to the development reserve, will be limited to 50%.
In the field of excise duties, a simplified regime for excise authorisations will be introduced. The range of taxable tobacco products will be extended and the tax rates increased. There will also be a change in the fines related to excise duties.
In the framework of accounting the concept of associated enterprises will be introduced. New items will be introduced that have to be treated as accrued income or may be recorded as expenditure among accrued income or accrued expenses. There will be an option to treat impairment loss on small amount receivables from each buyer or debtor as a consolidated amount, but the separate recording continues to be applied.
In the notes to the annual report the related party’s transactions will have to be included and there will be more specific requirements for reporting off-balance sheet items. There will be an amendment to the rules on signing consolidated annual reports and new mandatory information will have to be included.
In certain cases the requirement of a separate annual report for the pre-company period will not apply any more.