Príspevok Production models je zobrazený ako prvý na Moore BDR s. r. o..

I tento rok sme podporili kultúrne podujatie ,,Festival Osmidiv” usporiadané ôsmym rokom pre deti a osoby s mentálnym postihnutých v Banskej Štiavnici.

Hendikepované deti sa aj vďaka našej pomoc mohli naučiť nové zručnosti na workšopoch ako exotické tance ZUMBA, enkaustiku – maľovanie horúcim voskom, výrobu šperkov, prácu s drôtom, prútikárstvo a maľovanie na tvár. Teší nás, že sa tieto deti bavili a my sme takto nepriamo mohli podielať na ich radosti.

Príspevok BDR pomáha – Podporili sme podujatie je zobrazený ako prvý na Moore BDR s. r. o..

Once approved, the act in question would become effective as of 1 January 2018.

Hereby we describe and offer you most significant upcoming changes in the act on tax administration:

• Tax reliability index

The amendment of the act proposes to introduce an objective and independent evaluation of tax subjects.

The tax reliability index will refer to the evaluation of a tax subject based on the latter’s duty vis-a-vis the Financial Control. The purpose is to motivate tax subjects to achieve the highest possible reliability which will in turn allow them to use certain legal advantages over the tax subjects with lesser reliability. Furthermore, it is proposed to provide reliable tax subjects with special tax schemes.

• Obligation to submit notifications electronically also applies to self-employed persons

Another novelty represents a proposal that the obligation to submit notifications via electronic means also applies to all tax subjects that are legal persons registered in the Commercial Register, or natural persons who are entrepreneurs registered for income tax. The obligation to communicate electronically would also apply to the representatives of tax subjects who are not attorneys at law or tax consultants.  The only exception would be the natural persons who are registered for the income tax due to the sole reason of real estate rental which is not regarded as business.

• Aggregate report

The new article is based on the action plan of the fight against tax fraud. The Financial Administration of the Slovak Republic will be entitled to issue an aggregate report on the interconnected transactions of the tax subjects that were discovered to violate or evade tax rules, including especially the cases when the tax subjects are involved in a fraud network. The aggregate report will be issued especially for the reason of a comprehensive evaluation of the behavior of all involved tax subjects. It can be based on either a tax audit or a local investigation. However, the aggregate report will not replace individual reports from tax audits.

• List publication

The amendment proposes that the Financial Administration of the Slovak Republic makes new lists available to the public. Based on the data from the filed tax returns for the purposes of the income tax for legal persons (including those that have not been established or founded for business purposes), it is envisioned to quarterly publicize the list of tax subjects, together with the amount of their imposed tax, additionally imposed tax or tax loss.

Based on the data from the filed tax returns for the purposes of the income tax, it is envisioned to quarterly publicize the list of tax subjects, together with the amount of their claimed excessive deduction or additionally claimed excessive deduction. The minimum amount that will serve in the list as the basis for publishing the claimed excessive deduction or the additionally claimed excessive deduction will be established by a public statute issued by the Ministry of Finance of the Slovak Republic.

Once passed, the act in question would become effective as of 1 January 2018. 

However, we would like to point out that the amendments of the acts in question are currently put forward for the marking up process and the actual wording of the proposed articles may be subject to change or completion. We will naturally keep you updated on the approved amendments of the acts effective as of 1 January 2018.

Príspevok Amendment of the act on tax administration je zobrazený ako prvý na Moore BDR s. r. o..

Hereby we describe select most significant proposed changes in the act on value added tax:

• Modifications in the tax collateral

The amendment of the act modifies the tax collateral in several respects. It is proposed that the obligation to deposit a tax collateral is also extended to those natural or legal persons who have a back tax of 1,000 EUR and more as to the day they file an application for tax registration, or whose VAT registration has been cancelled due to a repetitive failure to file a tax return, a repetitive failure to pay their own taxes, and other legal reasons for the cancellation of the tax registration. The draft amendment of the tax collateral also proposes the solutions for the practice-related situations that are currently not laid down in law.

• New condition in trilateral business

In the current act, one of the conditions for a trilateral business is the requirement that the first purchaser must not be registered for VAT in the member country of the other purchaser. Following the guideline on the common system of value added tax, it is necessary to reformulate this condition so that the first purchaser does not have their residence, place of business, establishment, and domicile in the member country of the other purchaser, or does not usually reside in the member country of the other purchaser.

• Special adjustment concerning the assignment of claims

The amendment proposes to separately establish the tax duty for such a case, when the tax-payer (who applies a special adjustment) assigns a claim. In such cases, the tax-payer has the tax duty established on the day when the claim is assigned. The tax base will be the price required for the provided goods or service, excluding the tax. On the day when the claim is assigned, the purchaser is entitled to deduct the tax. The right to deduct the tax will not be related to the amount paid if the purchaser is using the regular scheme.

• Cancellation of the 5,000+ EUR limit

It is proposed to cancel the limit on the tax base for an invoice in the amount of 5,000 EUR and more to transfer the tax duty on cereal crops and metals that belong to the Common Customs Tariff. The transfer of the tax duty will, therefore, apply to all deliveries of these commodities without any limit.

• Possibility to issue aggregate invoice also for foreign person subject to taxation

The draft amendment enables issuing an aggregate invoice for electricity, gas, water, and heat for a period of no more than 12 calendar months, including the cases when the purchaser is a foreign person subject to taxation.

• Possibility of early return of excessive deduction

It is proposed to make available the faster return of a part of the undisputable excessive deduction based on the audit sheet data before the actual tax audit begins.

• Obligation to file aggregate sheet for persons registered for taxation according to Arts. 7 and 7a

The draft amendment of the act imposes the duty for the persons registered for taxation according to Arts. 7 and 7a of the act on value added tax to file an aggregate sheet if they participate in a trilateral business as the first purchaser. The period for which they file the aggregate sheet will be registered in the same way as that of the tax-payers who supply goods to other member countries.

• Obligation to return the tax deducted from the payment after deregistration

It is proposed to introduce a new regulation that obliges the payer to return the tax deducted from the payment in the last period of taxation if the goods or service in question have not been delivered until the day when the registration is cancelled.

It is proposed that this act, once passed, becomes effective as of 1 January 2018.

Príspevok Amendment of the act on value added tax je zobrazený ako prvý na Moore BDR s. r. o..

All proposed changes follow especially from the Manifesto of the Government of the Slovak Republic and the 2017 Plan of the Legislative Tasks of the Government of the Slovak Republic as well as the Anti-Tax Avoidance Directive (ATAD) that the Slovak Republic is obliged to implement no later than 31 December 2018 (with an exception of acceptable exemptions); they will become valid on 1 January 2019. The described periods will be extended by one year for transfer taxation rules.

If the draft amendment of the act on income tax were approved, the introduced changes would also affect the Act No. 483/2001 Coll. on banks and on changes and the amendment of certain acts, as amended, Act no. 90/2016 Coll. on housing loans and amending certain laws, as amended, as well as the act on tax administration.

The most important proposed changes in the act on income tax:

• New institute of disencumbrance by way of bankruptcy and repayment plan

The amendment of the act on bankruptcy and restructuring, effective from 1 March 2017, enables natural persons to enter the process of disencumbrance. This process also includes liabilities that are not business-related. The debtor – natural person – can choose one of the disencumbrance options – either repayment plan or bankruptcy. It is suggested that the depreciation of the liabilities that the debtor is obliged to pay will represent a tax-exempt income of the debtor. Furthermore, tax expense will also include the formation of an adjusting entry to the claims vis-a-vis the debtor who has been ordered a repayment plan by a decision of the court.

• Tax bonus for paid interests on housing loans

It is proposed that a new article is incorporated in the act. Based on this article, the tax-payer is entitled to a tax bonus for the interests paid in a respective period of taxation and calculated from the amount of the given housing loan per one housing loan contract, however no more than 50,000 EUR per one domestic residential real estate, being an apartment or a family house. The act will define the terms and conditions for the establishment of a claim on the tax bonus as well as the amount of the tax bonus for the paid interests.

• Extended definition of permanent establishment

The proposed amendment extends the definition of the pursuit of activities and established place that represent the basic requirements for the taking-up of a permanent establishment on the territory of the Slovak Republic. The pursuit of activities with an established place on the territory of the Slovak Republic also includes the pursuit of activities via a digital platform on the territory of the Slovak Republic. Such digital platform activities first and foremost include the mediation of contracts among movable or immovable asset holders or service providers and end users.

• Support for the spa industry

The amendment of the act also supports the domestic spa care and tourism industry.

It proposes to introduce a new non-taxable part of the base for the tax-payer related to the demonstrably paid expenses for spa care (meals, accommodation, and spa treatments not covered by the health insurance company). The deductible item is limited to 50 EUR per annum, while the tax-payer is entitled to claim another 50 EUR for the demonstrably paid expenses for his or her spouse, and yet another 50 EUR for his or her dependent child. There is a limitation that the aforementioned non-taxable part of the base may only be claimed by one of these tax-payers.

• Special tax treatment for the commercial use of intangible assets

It is proposed that the exemption of specified incomes will introduce a special tax scheme for the commercial use of intangible assets. This concerns the exemption of license fees related to the provision of granted patents (registered in the Slovak Republic and in the European Union), utility models and designs, but also to the provision of computer programs (software). To lay a claim to these two forms of exemption it is required that the items of intellectual property in question be a result of the tax-payer’s own activity pursued on the territory of the Slovak Republic. The exemption from tax in the amount of 50 % of the payments can only be claimed for the license fees related to the patents, utility models and designs, and software that are activated as the intangible assets of the tax-payer. However, the amount of the income for which the exemption can be claimed is limited depending on whether the provision from a dependent person was necessary to develop the activated intangible assets.

• Introduction of another form of a special tax scheme for the commercial use of so-called embedded royalties in production processes

There is now the exemption for a part of the earnings (revenues) from the sale of the products that use a registered patent or a utility model or design. The exemption is claimed in the amount of 50 % of that part of the earnings (revenues) from the sale of the products that fall to the sale price of the product, after the deduction of the real direct costs and the indirect costs, including manufacturing, administrative and commercial overhead expenses, as well as the deduction of the price surcharge that the supplier would claim in relation to independent persons regarding the performed functions and market conditions. To lay a claim to this form of exemption it is required that the items of intellectual property in question be a result of the tax-payer’s own activity pursued on the territory of the Slovak Republic.

• Precising of the taxation on shares in profit and other shares

The proposed adjustments refine the taxation on shares in profit, shares in liquidation balance, and countervailing equities belonging to partners of public business companies and to limited partners of limited partnerships in cases when they receive these earnings because of the companies in question having a capital participation in a limited company, a joint stock company or a co-op. The adjustment in question needs to be implemented especially because the current tax legislation does not equally treat the shares in profit paid to partners of business companies and to those of public business companies.

• Non-monetary deposits in real values only

After the amendment of the act is accepted, non-monetary deposits will, from a tax perspective, be done in real values only. More particularly, this will concern not only the deposits done as part of Slovak transactions but also individual deposits as well as the deposits of a company or its part outside the Slovak Republic. The act will also define an exception when the original values can be used for monetary deposits.

• Exit taxation

The main purpose of the new article will be to make sure that the tax-payer who is moving their property of changing their tax residence to a territory outside of the Slovak Republic has been imposed a tax in the Slovak Republic on the economic value of all capital profits made on our territory, although this profit might not have been achieved at the time of the exit. This concerns the situations when property is moved from the headquarter on the territory of the Slovak Republic to a permanent establishment abroad, including the situations when the tax credit method has been applied and/or the property of a permanent establishment in the Slovak Republic has been moved to the headquarter or to another permanent establishment abroad. The object of the taxation will be the property moved outside the Slovak Republic, if it is not effectively sold. This means that there is no change in the legal owner of this property, but the Slovak Republic loses its right to tax this property due to the exit. The amendment of the act also determines that a tax loss cannot be shown as a whole with respect to exit taxation. It is proposed that the exit taxation rate will be 21 %.

Since this is an unrealized profit tax, it will be possible to pay the tax in installments over 5 years, however, only if the property is moved to a country where the recovery of claims can feasibly be ensured. In other cases, the tax duty corresponding to the exit taxation is due within the period for filing a tax return.

• Dependant-related expenses

The aim of this adjustment is to prevent the situations that can emerge among dependants with the same tax expense being claimed according to both the law and a legal regulation in another country (double deduction of the same expense), or with such a tax expense being claimed in the Slovak Republic that does not represent the taxable income to be included in the tax base in another country. A solution to these situations is to reject the tax expense to protect the tax base in the Slovak Republic.

• Extension of the period for paying the withholding tax for the owners of apartments and non-residential premises

The proposed adjustment seeks to unify the period for paying the withholding tax and for submitting the notice of withholding and payment of the tax imposed on the apartment and non-residential premise owners’ association or to the natural or legal person with whom the owners of apartments and non-residential premises in the house made a contract on the pursuit of management with the tax-payers who have not been founded or established to pursue business. It is proposed to postpone the deadline from 15 days to the end of the calendar month following the calendar month when the income subject to the withholding tax was remitted or credited to the account for the operation, maintenance and repairs fund.

It is proposed that this act, once passed, becomes effective as of 1 January 2018, except for several points that will become effective as of 1 January 2019.

Príspevok Draft amendment of the act on income tax je zobrazený ako prvý na Moore BDR s. r. o..

The GDPR considerably reinforces the individual rights of citizens. The regulation also introduces the so-called responsibility principle. The latter rules data operators and mediators to bear the responsibility of implementing technical, organizational, and processual measures in order to be in conformity with the GDPR principles regardless of their size or the number of employees.

The introduced changes also concern sanctions that will be significantly tightened up. In case of violation, failure to implement or be ready for the new regulation, the concerned entities are subject to considerable fines that may in many cases lead to bankruptcy. Their maximum limit is 20 million EUR or 4% from the global annual turnover of the company (the higher option applies). The total amount of the fine will depend on many factors, such as the nature, severity and the duration of the violation, the number of aggrieved citizens, the extent of the damage, the measures taken by the operator or the mediator to mitigate the damage, etc.

The GDPR currently represents a very active topic and, if you are interested, we can provide the required expert consultancy, especially to make your company ready for the upcoming changes.

Príspevok Note: New General Data Protection Regulation effective as of next year je zobrazený ako prvý na Moore BDR s. r. o..

For the running of illegal offers, one can be fined up to 500,000 EUR.

The main reason for the fight against illegal hazard online is both tax evasion and the protection of minors from gambling. However, experts expect a difficult, even almost impossible fight by the Financial Administration against illegal online hazard.

The list of unauthorized websites:

https://www.financnasprava.sk/_img/pfsedit/Dokumenty_PFS/Elektronicke_sluzby/Verejne_dostupne_elektronicke_sluzby/informacne_zoznamy/2017.07.17_Zoznam_zakazanych_websidiel.pdf

Príspevok Fight against illegal hazard on the Internet launched je zobrazený ako prvý na Moore BDR s. r. o..

The new edition especially includes the changes that were approved during 2015 and 2016 with respect to the Base Erosion and Profit Shifting (BEPS) Project and its Reports on Action 8-10 (Aligning Transfer Pricing Outcomes with Value Creation) and Action 13 (Transfer Pricing Documentation and Country-by-Country Reporting). In addition to the changes, the revised edition also includes directions in the so-called “safe harbors” application, approved in 2013.

The 2017 edition of the Guidelines amends its 2010 edition. The original edition of the Guidelines was approved by the OECD Council and released in 1995. Even though the OECD Guidelines have been accepted in most tax administrations around the world, they are currently merely of referential authority in the Slovak Republic.

The revised edition in the read-only format is available from the OECD website at: http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/oecd-transfer-pricing-guidelines-for-multinational-enterprises-and-tax-administrations-2017_tpg-2017-en#.WW2314TyjIW#page1

Príspevok New edition of the OECD Transfer Pricing Guidelines je zobrazený ako prvý na Moore BDR s. r. o..

Príspevok As of 1 July 2017, the living wage is going up je zobrazený ako prvý na Moore BDR s. r. o..

The proposed changes follow from the action plan of the fight against tax fraud that the Slovak Republic is also committed to. The amendment primarily aims at improving the business environment and protecting honest entrepreneurs.

Hereby we would like to provide you with a summary of the most important upcoming changes in the Commercial Code:

• One of the significant upcoming changes will be the prevention of foul fusions of business companies. The measures will apply to speculative wind-ups of companies that seek fusions even though not being able to acquit their obligations and to cover the claims of their creditors. By being integrated into another company, failing business companies that are in danger of bankruptcy avoid the standard procedure of company wind-up and the whole process of debt recovery on behalf of the creditors thus become virtually impossible. In cases when a business company seeks a fusion with a business company in financial difficulties the former will be able to do so after having received an auditor’s report. The auditor is therefore responsible to certify that the fusion of such companies is not risk-bearing. Otherwise the auditor puts themselves at risk for losing their license. “Healthy” companies will still be able to pursue fusions.
• The amendment also seeks to proceed against so-called white knights. A person who merely lends their name and surname as well as their identity to acquire rights and duties that they have no real interest to exercise (a so-called white knight) will, once the amendment is passed, commit a new criminal offence – unfair winding-up. In such case the wite can be up to 15 years. Similarly, this criminal offence will also apply to the persons who transfer their share in a company to a “white knight” as well as to mediators of such transfers.
• Furthermore, irresponsible statutory bodies will be affected by stricter sanctions. Although they are legally obliged to file a petition for bankruptcy on time if their company is failing, this obligation is actually never followed in practice. Therefore, the draft amendment of the Commercial Code tightens up the responsibilities of statutory bodies. It proposes that each statutory body that fails to meet the obligation is held responsible for the damages that arise to the creditors due to a failure to file a petition for bankruptcy. The aggrieved creditor is therefore entitled to claim a disqualification of the statutory body. It means that the statutory body disqualified in such a way will not be allowed to act as a statutory body in any business company or association during a period of three years. In addition, they will be obliged to recompense the creditors for the damage that has arisen due to their failure to file a petition for bankruptcy. Furthermore, it is proposed to introduce the measure that a failure to file a petition for bankruptcy on time will also have criminal liability.
• The amendment of the Commercial Code will also govern executive board members in more detail. It is proposed that executive board members can only be a natural person who is fully eligible to enter legal acts and irreproachable in accordance with the special decree on business activities. The person who fails to meet the given requirements will not become an executive board member, even if the relevant authority agreed with the appointment of such person to the position.
• Another rule planned to be introduced concerns public sector partners. Under the new scheme, the public sector partners will be obliged to meet a 30-day maturity period of subcontractor invoices for public commissions.
• The upcoming changes will also affect the process of expungement of a company from the Commercial Register. In addition to an approval of the Tax Authority, an approval of the Social Insurance Agency will be also required under the new scheme. If these institutions register no debts of the person who requests an approval for expungement from the Commercial Register, they will issue the required approval in writing. It is only after this that the company may be expunged from the Commercial Register.
• The measures also concern the feasibility to establish a limited company. The persons who are registered on the tax debtor list and, under the new scheme, also the persons who are registered on the debtor list of the Social Insurance Agency will not be entitled to establish a limited company.
• Establishment of other capital funds. Even though the Commercial Code in some sections works with the term of so-called other own resources, the explicit arrangement of other capital funds has so far been lacking in the act. In practice, it has caused several legal as well as accounting confusions regarding their formation and allotment. This question has become ever more acute after a provision was introduced on a crisis of capital business company. The amendment predominantly aims at removing the problem from practice and clarifying the position of company’s own resources. The considered question is also necessarily related to bookkeeping rules. The draft amendment explicitly introduces, among other things, the notification duty, i.e. if a paid-up capital fund is to be reallocated among shareholders, the actual reallocation must be preceded by a test of company crisis. In addition, a notice of the extent of the reallocation must be published no later than 60 days prior to the reallocation. Regarding the fact that the payout of other capital funds currently represents a frequent, and perhaps even undefined issue (due to a lack of relevant legal arrangements), not least also in light of a company crisis, we are able to address any of your questions and provide you with expert consultancy based on our long-term experience in this field.

It is proposed that the described changes, following the marking up process and approval, become effective as of 1 January 2018.

Príspevok Upcoming changes in the Commercial Code effective next year je zobrazený ako prvý na Moore BDR s. r. o..