Tax News – December 2020

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TAX NEWS – 31.12.2020. The start of the year not only brings new year resolutions and challenges, but also many tax news. To give you a head start into the new year, we have prepared several informative articles, which will help you smoothly navigate all these changes.

2021 Tax Package

2021 Tax Package has introduced key tax changes and was published in the Collection of Laws on the last day of the year. Contrary to some expectations, the majority of changes therefore took effect as of 1 January 2021, which simplifies many practical procedures. On the other hand, there is very little time (if any) to prepare for these far-reaching changes or implement them in practice. You will find out more in our article.

Brexit and VAT

UK Brexit is a topic that has been filling headlines for the last few years. It has become all the more tangible by the signing of EU-UK Trade and Cooperation Agreement on 24 December. From the point of view of VAT treatment, UK has become a so-called third country as of 1 January 2021. It ceases to participate in the internal EU market and is no longer a member of the EU customs union. All the details can be found in our article.

Tax Code Amendment

A Tax Code amendment will come into force on 1 January 2021. Thanks to it, taxpayers will be able to file tax returns as late as May, even without a power of attorney signed by their tax adviser. For a detailed summary, please refer to our article.

2021 Per Diems

Changes have also affected per diems paid during domestic business trips. Per diem rates go up, compensation mechanism for the use of road motor vehicles changes and the average cost of fuel goes down. As of 1 January 2021, some rates of foreign per diems for foreign business trips change as well. For a detailed summary, please refer to our article.

On behalf of the entire LERIKA team, we wish you all the best in the New Year.

 

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