Tax and legal news

Based on the decision of the Supreme Administrative Court (SAC), the financial administration in September publicly accepted excluding VAT from the real estate tax base in cases where the tax was paid by the transferor and the transfer was executed between 1 January 2014 and 31 October 2016.

The financial administration published information on the tax obligations of providers of accommodation services via internet platforms such as Airbnb and others. Entities using such services should learn about the possible tax consequences.

Based on the amendment to the Income Tax Act effective from 1 July 2017, trust funds could be considered a parent company and – when meeting certain conditions – exemption from tax on received payments of profit shares from a subsidiary could apply, similar to parent companies which are joint-stock companies, limited liability companies, or a cooperative.

The financial administration published a very important opinion on 24 November 2017 which reflects the decision of the Supreme Administrative Court (SAC) on including (or not including) VAT in the agreed price when applying the correct procedure for determining real estate transfer tax.

Based on the amendment to the Income Tax Act, from 2018 employees will be able to make their declarations for the purposes of tax on dependent activities in written and electronic forms.

It is obvious that the financial administration makes much efforts to increase the collection of taxes with the help of existing instruments for tax collection of both existing or potential tax arrears. Part of the motivation is to use instruments for preventing tax avoidance, including extending the possibilities of the guarantee mechanism.