Tax and legal news

On 1 January 2025, new changes came into effect regarding interest payments and penalties.

Compensatory tax ESG reporting The ViDA directive and the modernisation of the rules for the digitalisation of VAT in the EU

There have been a number of relatively significant changes to VAT since January 2025.

The so called “švarc system” existed, exists and will exist. It is a tool frequently used by many firms which basically represents “hidden employment” whereby the firms save money they would otherwise spend on social security and health insurance contributions. Also, the termination of such relationships is much easier because the Labour Code does not allow employers to end a person’s employment easily. There is a risk of tax and related fees being levied if the state administration assesses the relationship as not independent but fulfilling the characteristics of a dependent activity or employment. What has changed in this area recently? How have court rulings responded to this type of cooperation? You will be pleasantly surprised: some of them have given companies a helping hand. We will be happy to help you examine whether and to what extent this topic applies to you and how best to respond in a timely manner.

An extensive amendment to the VAT Act is currently in the process of securing approval in Parliament, it should be effective from 1 January 2025. There are many other changes to the amendment that will become effective from 2028. Some of the main changes, which will take effect relatively soon, concern the taxation of real estate transfers. As of 1 July 2025, the rules for the determination of the period in which real estate transfers would be exempt will be significantly amended. Moreover, the definition of building land from the VAT point of view will likely be changed.

From January next year, a major amendment to the Accounting Act is planned, which should significantly change the conceptual framework of this law; this is why it is sometimes said that it is not an amendment, but a completely new law. The amendment has been approved by the government, and the new regulation should bring the law significantly closer to IFRS – especially in the areas of the precise definition of assets, liabilities, debts (which will replace the current liabilities and will now include provisions and accruals accounts), equity, contingent assets and debts, expenses and income. The amendment should reduce the administrative burden on entities and improve the usability of financial statements. The proposed effective date is 1 January 2026, but owing to transitional provisions, some of the new rules will apply to previous accounting periods.