Tax and legal news

The OECD has published an update to its Commentary on Article 5 of the Model Tax Convention on Double Taxation. Among other things, it addresses the principle of permanent establishment in cases where employees work from home, or another location within the country that is not directly connected to the employer's business.

Many firms use the employees’ stock option plans (“ESOP”) as a way of remuneration for their employees either in the form of company options or stocks. This field has been changed significantly in the recent years, and other changes are on the horizon.

The Senate debated and approved an amendment to the Compensatory Tax Act which prolongs the deadline for submitting the first informative overview from ten to fifteen months after the end of the reporting period. During the debate, a number of other amendments regarding insurance companies were approved.

A new amendment to the Energy Act changes the way the photovoltaic power plants are depreciated. The special way of tax depreciation of the technological parts of the plants was revoked as of 1 August 2025.

The Senate approved the draft bill on the employer’s single monthly report (the “ESMR”) effective from 1 January 2026 with some exceptions (some reporting duties of employers and the mandatory monthly reports were postponed till 1 April 2026).

Please note that the key part of the amendment to the Value Added Tax Act became effective from 1 July 2025, and it brings significant changes to taxation of real estate.