Tax and legal news

From January 2024, a non-monetary benefit provided to the employee in the form of using a pre-school childcare facility is tax-exempt up to an amount equivalent to half of the average wage.

The original changes to the recovery package in the area of taxation of contracts for work (“CfW”) could not be implemented because it contained a number of errors and inaccuracies, which is why further changes were made.

According to the current wording of the Income Tax Act (the ITA), the meal allowance (in both monetary and non-monetary form) is exempt from personal income tax only if the employee works at least three hours per shift or calendar day.

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.