Amendment to tax laws approved

The Chamber of Deputies approved the original version of the proposed amendments of selected tax regulations which were supposed to become effective from January 2017. The Chamber did not accept changes proposed by the Senate. The approved law will have to be signed by the president. It will become effective either from 1 June or 1 July 2017 depending on the date when it is published in the Collection of Laws.

Most of the changes to value added tax regulations will be effective as of the mentioned date (e.g. specification of the duty to withhold VAT from incoming payments, revocation of the specific treatment for recurring supplies, adjustments to deduction of VAT concerning deficits in cash flow). Also the changes to income tax will be effective as of the same date (e.g. increase in tax benefits for the second and third children). The changes will be relevant for the 2017 tax period.

However, some of the changes to income tax will be effective from the 2018 tax period or with respect to the date when depreciation of the given long-term assets is classified or started; or to the date when the subject of financial leasing is received.