Tax

Reform of Individual Income Tax and Position of Entrepreneurs

The Fiscal Council of the Republic of Serbia published on 29 September 2022 the „Proposal of social and tax policy measures for reducing inequality and poverty risks in the Republic of Serbia“. One of the proposed measures of tax policy for reducing inequality is doubling the limit of non-taxable salary amount, from RSD 19,300 to RSD 40,000 and introduction of non-taxable census of RSD 20,000 per month, to be granted for each household member – dependent. In order to maintain the existing level of budgetary funds, should this proposed reform of individual income tax be adopted, i.e. in order to prevent decrease of budgetary funds due to the reform, it is necessary to increase the salary tax rate from 10% to 15% in parallel with increase of non-taxable census and introduction of non-taxable census for household members-dependents.

183 Days of War in Ukraine: Tax Considerations for Refugees and Their Employers

Under many tax treaties mirrored after the OECD Model Treaty, the 183-day period implicates a significant threshold: individuals temporarily present in the treaty-party country (the Host Country) may be taxed by that country on income for personal services performed there if the individual resides in the Host Country for over 183 days in a given tax year. This is called the 183-Day Rule.

Romania: Changes to Income Tax on Salaries - Maximum Benefit at Minimum Cost

According to the latest figures from the National Institute for Statistics and other public information, the annual inflation rate has continued to rise and, at 15.32% in August, reached its highest rate in 20 years. Inflation has been rising at a galloping rate over the past year, both globally and nationally.

Regulation of the Rights and Obligations of Directors Outside the Employment Relationship

One of the questions that is often risen in practice is whether there is an obligation to conclude a contract with an individual who is registered as a legal representative, i.e., director of a company, and who does not establish an employment relationship in that company. In relation thereto, there are also inquiries whether it is mandatory to provide for a compensation for the work of a director who is not employed with the company, as well as what are the tax obligations of the company regarding the compensation that a director receives for performing the respective capacity.

Hungary Extends the Scope of Transaction Tax

As of 1 July 2022, Hungary's already existing financial transaction tax has been extended to payment service provision, credit and loan provision, currency exchange and mediated currency exchange services provided on a cross-border basis in Hungary. Provision of cross-border services means financial services provided in a country other than the country where the seat, place of business, head office, or branch of the service provider is located. Basically, this means that non-Hungarian service providers providing such services to Hungarian customers will most probably be affected by this extension.

Poland: Slim VAT 3.0 - Tax Focus

Arrangements and consultations on the draft act amending the VAT Act and certain other acts, i.e. the so called SLIM VAT 3 (draft No. UC128), were scheduled to complete by 26 August.

Michal Jagielski and Wiktor Rainka Join JDP

Michal Jagielski and Wiktor Rainka have joined JDP Drapala & Partners as a Co-Head of the firm’s Tax team and Head of the IP/IT/Advertising and Media Law team, respectively.