Tax and legal news

Under the Income Tax Act, income from the sale of, for example, a family house or a flat can currently be tax-exempt if the seller uses the received financial means for the acquisition of his or her own housing.

The amendment introduces certain income tax changes in the area of investment funds. It is proposed that the entire amendment to the ISIF Act shall take effect on 1 July 2024. It will now also be possible to create sub-funds within a limited partnership on limited partnership certificates as well as for the newly introduced legal form of a public limited company with fixed share capital (“SICAF”).

The amendment is at the very beginning of the legislative process and it implements mainly the rules set out by the OECD; moreover, among many legislative changes to “safe harbour” rules, it also changes conditions for submitting tax returns and informative reports.

In a recent judgement, the SAC confirmed the key rules for the determination of the beneficial owner in the application of licensing agreements. It defines the beneficial owner of royalties by three main features.

In a recent decision, the SAC confirmed that a lack of clear documentation can lead to the tax authorities refusing a deduction without further examination of the content of the project in question. The SAC confirmed that if the documentation does not meet the formal criteria, the tax authority may not even proceed to assess the material content of the project and its contribution.

From January 2024 onwards, a number of changes in the tax area are expected as part of the recovery package. The recovery package has successfully passed the Chamber of Deputies and now awaits approval by the Senate.