Tax News – October 2020

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TAX NEWS 26.10.2020. The autumn has brought us several tax law changes. We have prepared a short summary of the most important news and believe that the reported pieces of information will be interesting and valuable for you.

2021 Tax Package

The legislative journey of the 2021 Tax Package has not yet reached its destination. We already covered the main changes brought by the Income Tax Law amendment in our article last month. In the meantime, the Tax Package was discussed in the Parliament, which resulted in several modifications to the proposed amendments in terms of tax depreciation of assets. The new article covers this in more detail.

Lump Sump Tax

The proposal of the Ministry of Finance on lump sum tax for entrepreneurs and other self-employed individuals was negotiated and approved by the Parliament and headed to the Senate. Read our article about the main principles of this tax and for whom their implementation will be beneficial.

Tax Loss carryback

Tax loss carryback is one of the instruments that income taxpayers (individuals and corporations alike) can newly adopt to improve cash flow and bridge a period of an unexpected fall in income. The new regulation is part of the tax package which was approved as of 1 July 2020 and was implemented in tax laws to counter future economic shocks. The new article covers this in more detail.

Abolition of real estate transfer tax

One of the most discussed laws of this year is the law that would abolish the real estate transfer tax, which was approved by the Parliament at the end of September. This tax is now a thing of the past. You will find basic information in our summary. We recommend that you read it in its entirety – you will learn a lot of practical information as to various exceptions from the rules and in terms of deadlines, as well as of the relating impact on the income tax law.

We wish you that you stay healthy in the upcoming autumn days. And we will keep you posted about further changes in the tax laws.