The tax package passed
On Tuesday, April 4th, 2017, the Members of Parliament rejected the Senate’s amendments and re-approved the government’s “tax package”. The law now goes to the President for his signature and will enter into force 15 days after its publication in the Collection of Laws. What changes are waiting for us in the area of income taxes and VAT?
- The payer will generally have the possibility to amortise the new technical evaluation. The payer who is authorised to the use the property with technical evaluation will have this possibility, it means, for example, the sub-tenant generally, where there will be an agreement between the tenants. It will be valid for the new technical evaluation only.
- Newly, the paid advance for the profit share should be returned after the transfer or passing the share on in the business corporation. The right to the return the tax, which was taxed unjustifiably and which is applied to the paid advance for the profit share, belongs to the taxpayer, who is obliged to return the advance for the profit share. Not to the original owner of the share, who the advance was paid to, the taxpayer has to return the advance for the profit share. That´s why the withholding tax has to be returned to the actual partner.
- Removal of business assets – the goods will be considered to be removed at the time when any of the conditions for which the initial transfer of assets across the border is not relocate. For example, a machine rented from the Czech Republic to Germany will be shown as removed at the same time that the machine will be sold in Germany instead of it being returned to the Czech Republic.
- Acquisition of goods – it is not only the purchase from the state of the seller, but it will be, for example, any acquisition in case a German company sells a machine to the Czech Republic, which the Czech buyer subsequently moves to Poland.
- Export of the goods –Exporters in the EU member states will no longer be required to confirm the exit of the goods within the EU. The reason is that the customs offices of member states are not obliged to confirm the export of goods via the document. The day of the provision of the supply will be considered as the day the goods will be exported out of the EU.
You can find the list of changes in the area of income taxes in this article, where you can read about the VAT changes there.
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