Tax Alert, March 2018

The Ministry of Finance published three new Rulebooks:

• Rulebook on amendments and changes to the Rulebook on the contents of the tax return for the calculation of corporate income withholding tax on income and fees realized by nonresident and resident legal entities that will enter into force on April 1, 2018;
• Rulebook on amendments to the Rulebook on PP OPO tax return that entered into force on March 17, 2018; and
• Rulebook on amendments to the Rulebook on PPP PD tax return that entered in force on March 17, 2018.

Rulebook on amendments and changes to the Rulebook on the contents of the tax return for the calculation of corporate income withholding tax on income and fees realized by nonresident and resident legal entities

One of the most important changes is that a payer of income is no longer obliged to submit a tax return in case where, in line with the provisions of a double tax treaty, the tax is paid in another country, provided that at the time when the taxable supply occurs a payer of income has an evidence that a non resident legal entity is a resident of the country with which the double tax treaty was concluded and that it is the beneficial owner of income in accordance with the Law on Tax Administration and Tax Procedure. 

Rulebook on amendments to the Rulebook on PP OPO tax return

The Rulebook prescribes the following changes:

• Tax Authority jurisdiction for submission of non-residents tax return via tax proxy is more precisely defined;
• Data on the taxpayer is additionally defined;
• In the Income types catalogue, the titles Dividends and participation in profit and Investment unit income are added;
• The title Income from own immovable property is changed to Income from immovable property and all types within this group are listed without “own”;

This Rulebook prescribes the new self-assessment tax return – PP OPO form.

Rulebook on amendments to the Rulebook on PPP PD tax return

The Rulebook prescribes the following changes and amendments:

• In PPP-PD form codes for entrepreneurs are added;
• In the Income types catalogue, the title (type of income) Salary, or personal salary, with the relief under the Article 21dj of the Law and Article 45g of the Law on mandatory social security contributions is added;
• Salary of the employee assigned for professional development and training purposes for the needs of the employer is added;
• Financial support for the medical treatment of the employee in the country or abroad is added;
• Salary reimbursement during the maternity leave, child care leave and special child care leave paid out in accordance with the Law on financial support to families with children is added as new type of income;
• The title Income from own immovable property is changed to Income from immovable property and all types within this group are listed without “own”;
• New types of income, for the income above the prescribed non-taxable amount under the Article 9 of the Law on Personal Income Tax, are added.