CEE Tax & Payroll Newsletter 1/2023

Get a better overview of the most important changes in tax, labour, and payroll legislation in the CEE region.

The CEE Tax & Payroll Newsletter aims to share Mazars’ latest news on tax, labour, and payroll legislation in the Central and Eastern Europe region, with the scope of helping you to prepare for the changes that could lie ahead in the following countries: Albania, Austria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia, and Ukraine.

Insights to guide you through today’s evolving regional tax, labour, and payroll landscape

  • Energy crisis and transfer pricing set-up of CEE limited-risk entities by Vit Fritzsche, Tax Manager, Mazars, Czech Republic, Liviu Gheorghiu, Tax Director, Mazars, Romania and Anna Bednarz, Tax Supervisory, Mazars, Poland.
  • How top companies run international payroll in the ever-changing business environment by Jana Boštíková, Outsourcing HR & Payroll Leader, Mazars in CEE and Ioana Vlad-Rădulescu, International Payroll and Compliance Director, Mazars.

News from the CEE countries

Albania

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  • Changes to the minimum wage for social contribution purposes.  
  • Maximum wage changes, as it is indexed by the same amount for the effect of calculating social contributions.                             

Austria

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  • BEPS 2.0: Global minimum taxation, the fight against undesirable tax practices.
  • Further benefits for the purchase of e-vehicles from 2023 onwards.
  • Tax innovations 2023, new benefits for investments, and tax reductions.
  • AFRAC Technical Note relating to the Accounting of the Energy Cost Subsidy and the Recovery of COVID-19 Aid.

Croatia

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  • Law on Extra Profit Tax, applicable under two conditions.
  • Contribution base for compulsory insurance for 2023.
  • Interest rate on loans between related parties for 2023 (safe harbour rule). 

Czech Republic

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  • Tax deductibility of interest on an acquisition loan.
  • The payment of a profit share concealed by the sale of shares.
  • Tax (non)deductibility of re-invoicing expenses.
  • Donations provided in 2023 in connection to the military conflict on the territory of Ukraine.
  • Changes in the waiving of fines for control statement and tax sanctions.        

Hungary

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  • Extended producer responsibility fee, alongside the environmental product charge.
  • New transfer pricing disclosure form now available.
  • “SZÉP” Card Guide, user terms and tax rules applicable to the Széchenyi Recreation Card.
  • Changes in the rules concerning the extra profit taxes.

Poland

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  • E-invoices via KSeF entry into force postponed.
  • Research and Development relief package.
  • The deadline for publishing the 2021 tax strategy ended.
  • Change in the provisions on the documentation obligation in the field of transfer pricing.
  • Mazars HR-Pedia, a dedicated guide, with HR and payroll obligations for employers. 

Romania

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  • Fiscal updates to the Tax Code and VAT procedures.
  • Major Fiscal Code modifications.
  • New amendments to the Tax Procedure Code.
  • News regarding: Recycled plastic, Environmental Fund, Circular Economy, Sanitation Law.
  • Main amendments of legislation in the employment area for the beginning of 2023. 
  • Legislative changes on Accounting Law.

Serbia

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  • Transfer prices adjustment concept.
  • Amendments to the VAT rulebook and other important amendments.                          

Slovakia

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  • Amendment to the Accounting Act - report on income tax information.
  • The Amendment to the Slovak VAT Act.
  • Changes in the Slovak Income Tax Act.
  • New Guidelines of the Ministry of Finance on the content of transfer pricing documentation.
  • Approaching deadlines for Annual tax settlement.

Slovenia

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  • Significant amendments to the Income Tax Act.
  • New DAC7 reporting obligations for operators of digital platforms.
  • Raise of the minimum wage by 12%.
  • Sale of own share in 2023.
  • Supreme Court ruling: IPS workers vs. Luka Koper.
  • Amendments to the Excise Duties Act.

Ukraine

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  • New types of Transfer Pricing reporting.
  • Important changes in the special tax regime of Diia.City.
  • Renewal of certain tax audits during martial law.
  • New procedure for confirming the status of a tax resident of Ukraine. 

Document

CEE-Tax-Payroll-Newsletter-March-2023.pdf
CEE-Tax-Payroll-Newsletter-March-2023.pdf