Changes in the Corporate Income Tax Act with the beginning of 2020

With the beginning of January 2020, in the case of leaving the country, taxation on corporate income and assets is introduced. This means, that when a taxable person transfers assets abroad or changes his jurisdiction as a resident for tax purposes, then the capital profit, created but not realized on the territory of the resident country, will be an object of taxation.

However, there exists the possibility of installment payments of the due corporate tax related to the transfer of assets or profits abroad. This would be possible in case of transfers to the country, member of EU or to the country signed the Agreement for the European Economic Area.

Some changes also have been made concerning the cases of non-fulfillment of conditions in case of corporate tax exceptions (aids). In this case, the tax is due  in a full amount and no deduction of the tax amount correspondent to the amount of the outstanding investment commitment can be applied.

These changes in the corporate tax have been introduced by a new law (Law on amendment) as well as there are suggestions for changes in the transitional and final provisions of 4 further laws – the Personal Income Tax Act, the Local Taxes and Fees Act, the Value Added Tax Act and the Excise Duty and Tax Warehouses Act.

Source: standartnews.com