Tax and legal news

Since 2014, the method actually used in is the following: if the tax base for the real estate transfer tax is the agreed price, it is understood that it is the agreed price inclusive of VAT.

The amendment to tax laws that we informed you about earlier was published in the Collection of Laws and will become effective from 1 July 2017. Most of the changes to value added tax will become effective at that time. A majority of the changes to income tax will not be reflected until the 2018 tax period (or the tax period beginning on 1 July 2017 or later if the tax period is a fiscal year), but there will be certain exceptions.

According to a currently published opinion issued by the General Financial Directorate, the transfer of ownership of an apartment unit can be exempt from real estate acquisition tax for the first transfer of new apartment units only if the apartment unit is located in a residential building. This means it cannot be applied if the unit is located e.g. in a family house or multipurpose building.

The Chamber of Deputies approved the original version of the proposed amendments of selected tax regulations which were supposed to become effective from January 2017. The Chamber did not accept changes proposed by the Senate. The approved law will have to be signed by the president. It will become effective either from 1 June or 1 July 2017 depending on the date when it is published in the Collection of Laws.

Reasons for waiving penalties related to inspection reports extended and determination of the date of delivery of an appeal sent by e-mail

The Chamber of Deputies approved the governmental tax package containing a number of changes regarding namely the income tax, value added tax and Tax Code. Originally, the changes should have been effective from 2017 (some of them even for the 2016 tax period) but because of the delay in the approval process, the effectiveness will be postponed. It means that some of the changes will become effective in 2017 and some of them from the 2018 tax period (for example, applying the withholding tax to minor incomes from the dependent activity and not only to those under an agreement on carrying out work). The law will have to be discussed in the Senate and signed by the president.