Onute Krisciunaite

📢 Our Tax Partner Elena Sighinaș summarizes below the most relevant new changes to Romania's Tax Procedural Code. Currently in draft form, they are expected to address the following key areas: 📌Expanded joint liability #provisions: the revised provisions extend joint #liability for partnerships, freelancers and liberal professions, ensuring a broader scope.   📌 Enhanced communication via Virtual Private Space (SPV): legal representatives of #taxpayers will receive recurrent #tax information. A new sworn statement has been introduced, with specific deadlines for submission depending on the type of represented taxpayer (large, medium-sized, etc.)   📌 Transfer of #VATReceivables: the transfer of VAT receivables will now be permitted as long as the transferee has outstanding tax liabilities.   📌 Introduction of a Digital Identification Number: a new Digital Identification Number, as an alternative to the personal identification number, may be used for various interactions with tax authorities, with the alleged purpose to secure personal data protection.   📌 Implementation of Non-Tax Numbers: non-tax numbers will be introduced for individuals and entities that do not hold taxpayer status but are required or opt to fulfill certain tax obligations, e.g. enrollment in the virtual private space, e-invoicing etc.   📌 New conditions for public notaries that authenticate sale-purchase #agreements covering real estate properties to ask for tax clearance certificates to both seller and buyer; payment of outstanding liabilities prior to authentication is mandatory.   📌 Payment of tax liabilities into the Unique Treasury Account becomes optional; dedicated treasury accounts may be used. 📌 Initiation of random tax audits may be performed out of the risk assessment procedure within certain limits. 📌 Direct debit option for recurrent tax payments may be used for taxpayers that do not record outstanding tax liabilities. 📌 Revised procedure on rescheduling of tax liabilities – rescheduling of tax liabilities is expected to suffer changes (e.g. eligibility thresholds are increased, revised eligibility conditions, reduction of the deadline to settle outstanding tax liabilities that are not covered by the rescheduling procedure etc). Further details will be provided upon the official release of these changes in the Official Gazette of Romania. #Taxation #TaxProceduralCodeRomania #TaxChanges  

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Montenegrin VAT rules regarding foreign Clients 🇲🇪📡 A few days ago, while exploring an expat group in Telegram, I came across an opinion that Montenegrin legal entities/individual entrepreneurs can issue invoices to foreign Clients and not pay VAT considering that "all services provided to foreign Clients are exempt from VAT". This is not true. Furthermore, it is very dangerous to treat tax obligations in this way. We are talking about severe tax and other implications. General rule is that VAT is paid on the provision of services with very specific exceptions to this rule. Montenegrin legislators, unlike the neighboring countries, decided to go a step further and give certain interpretations of the exceptions in the law itself. This speaks of the expected legislative rigidity regarding exemption from VAT. I would like to underline one more important matter: maximum caution is recommended in terms of VAT, considering this is the main state tax, from which the current needs of the state are financed. For example, in 2022, the share of income from VAT made up more than 50% of the total income from taxes and customs in Montenegro. #taxmontenegro #налогичерногория

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Today, the Estonian government approved a 2% tax on corporate profits as part of its new defense tax initiative. To summarize, the new Estonian government has proposed a defense tax plan that includes several tax increases: VAT will increase from 22% to 24% starting in July 2025, a 2% tax on individuals’ taxable income will take effect in 2026, and a 2% tax on corporate profits will also begin in 2026. These tax increases are temporary and will remain in effect until the end of 2028. The taxation of corporate profits has been the most debated aspect of these proposals, especially considering Estonia's current simple and transparent corporate income tax regime. Alternatives, such as taxing companies based on payroll or assets, were considered. However, the government decided to proceed with the original plan of a 2% tax on corporate profits. The tax base for corporate profits will be the previous fiscal year's accounting profit before income tax, with advance payments required. This means that in 2026, advance tax payments will be based on 2025 profits. After the submission of the annual report, a recalculation will be made based on actual profits. In general, the tax base will be the accounting profit before tax. The tax will apply only to profitable companies. However, in my opinion, this approach could be seen as unfair to companies that are profitable, as well as to individuals, who are required to pay a 2% tax on their taxable income regardless of their financial circumstances. Given that the 2% corporate profit tax is based on accounting profit, we may expect companies to adopt more creative internal accounting practices.

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📣 CJEU judgement in relation to the 8th EU Directive ⚖ The case C-746/22, judged on May 16, was opposing the Slovak-established company against the Hungarian tax authorities. The CJEU confirms that the one-month deadline laid down in Article 20, paragraph 2, of the 8th European Directive for provision of additional documents to the tax authorities of the member state of refund is not a limitation period. In the event of the VAT reclaim rejection due to non-transmission of the requested documents within a period of 30 days, the foreign company has the right to provide them at a later stage within an appeal procedure, regardless the instance : ✔ before a first-tier tax authority (C-133/18) ✔ before a second-tier tax authority (C-746/22) 📌 Thus, non-resident companies having obtained a refusal of VAT refund in Hungary for the reasons mentioned above should consider the ways of appeal. Find more details and analyses in our below article 👇 https://lnkd.in/evqYChQK Siouzanna Maignan #vatrefund #Hungary #CJEU

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Absence of VAT on director fees in principle. But need to check your exact own situation. Circular 781-2 of the Luxembourg indirect tax authotities regarding VAT on director fees has just been released and explains the position of Luxembourg tax authorities in this respect further to the ECJ 2023 C-288/ 22 case and local Luxembourg tribunal decision of 22 November 2024, number 2024TALCH03/00180. Key VAT concept for determining whether VAT applies on director fees is the independance of the director, whether it performs his/her activity independently. Directors who consider that VAT should not have applied to their director fees as from 2018 should be able to claim back VAT unduly paid as from next week on the webplatform Myguichet. Circular has not limited the possible claim to the director fees received for mandates in SAs, i.e., in Luxembourg public limited liability companies, but to all mandates where VAT has been applied.

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[#MaltaBudget2025] The Budget Implementation Bill has been published proposing amendments to the Income Tax Act, Chapter 123 of the Laws of Malta and the Income Tax Management Act, Chapter 372 of the Laws of Malta. The proposed changes are subject to Parliament approval and will only come into effect if executed via the Budget Measures Implementation Act. 👇 Read our article to learn more #BDOMalta #Malta #Tax | Josef Mercieca | Sara Farrugia | Svilena Vaklinova | Luca Mizzi

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📌 Have you caught up on Andersen's publication on Restructuring & Insolvency? Don’t miss out on "Europe after Directive (EU) 2019/1023 of 20 June 2019: A Comprehensive European Guide." Explore the guide 👉 https://lnkd.in/d3mZG-Pp   Directive 2019/1023 is transforming restructuring and insolvency frameworks across EU member states. This publication offers an in-depth review of the evolving legal frameworks in different EU countries and some non-EU jurisdictions, with Dr. Charlene Mifsud and Joanna Waszewska providing insights in the #Malta chapter.   About the restructuring and insolvency comprehensive guide: https://lnkd.in/dKdsR4gh   #Law #Lawyer #Malta #Maltalawfirm #CCMalta #ChetcutiCauchi #Restructuring #Insolvency #AndersenEurope #AndersenRestructuringInsolvency Andersen | Andersen Global

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No taxable transactions 'inside' a VAT Group CJEU's AG Rantos: no taxable transactions exist between entities that are part of the same VAT group. Let's hope the CJEU follows this Opinion! "supplies of services for consideration between persons forming part of a group formed by legally independent persons, but closely bound to one another by financial, economic and organisational links, under the second subparagraph of Article 4(4) of Sixth Council Directive 77/388, as amended by Directive 2000/65, do not fall within the scope of value added tax (VAT), even where the recipient of the supply of goods or services is not (or is only partly) entitled to deduct input VAT." LINK: https://lnkd.in/ePZaxYHc

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As mentioned in our previous articles, the EU Directive 2022/2523 has been implemented into Hungarian law and Hungary has become one of the countries applying the global minimum tax regime. As is the case for all other taxes, tax liability is not entirely limited to the payment of the tax, but in order to comply with the law, all other tax obligations must be fulfilled, in particular the obligation to file, report and declare taxes. Our new article seeks to shed light on these ‘administrative’ tax obligations.

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As we closed another quarter, let's reflect on the key developments that have shaped the international and Bulgarian tax landscape during that period. Here are the highlights: 💥 #Bulgaria and Malta are progressing in the renegotiation of the double #tax treaty 💥 #OECD issued additonal guidance on the application of #Pillar1 Amount B and #Pillar2 global minimum tax rules 💥 EU progresses with #FASTER Directive 💥 #CJEU rules on Bulgarian WHT case 💥 Supreme Administrative court rulings on #transferpricing cases and international tax aspects of intra-group financing Take a look at the link below 👇

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We are proud that the Court of Justice of the European Union (CJEU) adopted the position we presented in our arguments before the German Notarial Chamber regarding the definition of legal services under EU sanctions against Russia. Our legal interpretation and reasoning were instrumental in clarifying the boundaries of notarial authority in such transactions. In collaboration with the German public notary and German Notary Chamber, we argued that notarial functions, rooted in public authority, should be seen as separate from legal advisory services. This distinction is crucial for defining which services fall within the sanctions framework, ensuring notarial activities remain accessible, even under sanctions. 📜 At Petrovic Legal, we’re committed to supporting a clear, pragmatic interpretation of EU regulations. By helping to delineate boundaries between legal and notarial services, we advocate for a balanced approach that upholds both public interest and regulatory objectives. To read more about our position and insights on this issue, check out our latest article below. #EUSanctions #LegalServices #CJEU #PetrovicLegal #Compliance #LawFirm

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🚨 Important VAT Updates Ahead of 2025! As of January 1st, 2025, Luxembourg's VAT law will undergo some changes, following the submission of bill n°8406. The key provisions to take note of: 🔹 Change in VAT localization rules for virtual events 🔹 Adjustments for the art sector 🔹 Restructuring of the special scheme for small enterprises 💡 These provisions will bring clarity on the VAT treatment for some supplies (art and virtual events) and simplify VAT obligations for (small) businesses. For more detailed insights, check out our newsletter: http://kpmginfo.lu/3AQK7XL With Maria Anna Nonweiler and Samuel Cazes KPMG Luxembourg

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📢 VAT and company directors: new rules for individuals and legal entities   📑 Circular n°781-2, published on 11 December 2024, sheds light the implications of the CJEU ruling (C-288/22) and the Luxembourg national judgment of 22 November 2024, regarding VAT obligations for members of boards of directors.   🔑 Key takeaways:   ◾ Both individuals and legal entities (acting as directors) are affected. ◾ VAT liability depends on two main criteria: ➡ The activity is economic, continuous, and remunerated in a predictable manner. ➡ The activity is conducted independently, which implies bearing the economic risk.   📌 Directors who do not meet these criteria can request a simplified VAT regularisation for the relevant years via MyGuichet.lu in 2025.   💡 A significant change to consider: this jurisprudence could substantially affect your VAT obligations, whether you are an individual or a company acting as a director. Find the circular here : https://lnkd.in/ekG-Jk5K   👉 For detailed guidance and support, please contact our VAT Team led by Steve Georges

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Don’t miss the high-level round table discussion on business challenges in the age of globalization, green transition and digital revolution that will take place in the frame of FinD-INFO days, on 27 and 28 May in Portoroz. #Senica #Andersen #Tax #Finance #Accounting

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According to Presidential Decree No. 9075, published in the Official Gazette on November 1, 2024, the withholding tax rates applicable to income and earnings from bonds and bills issued by banks, as well as from lease certificates issued by asset leasing companies where banks are the fund users, have been revised for the period from November 1, 2024, to January 31, 2025. On the other hand, the reduced withholding tax rate of 7.5% on income from other investment funds, excluding variable, mixed, eurobond, foreign debt, foreign, hedge funds, and funds with "foreign currency" in their titles, expired on November 1, 2024. As of this date, income earned from these investment funds will be subject to a 10% withholding tax rate. Looking back, from December 23, 2020, to March 31, 2021, the withholding tax rate for income from TL investment funds, excluding variable, mixed, eurobond, foreign debt, foreign, hedge funds, and those with "foreign currency" in their titles, was reduced to 0%. This practice was extended several times by various Presidential Decrees, with the latest extension valid until April 30, 2024. Subsequently, from May 1, 2024, to July 31, 2024, a 7.5% withholding tax rate was applied to income from these investment funds, and this measure was extended until October 31, 2024. However, since no further extension was introduced in Presidential Decree No. 9075, published on November 1, 2024, income from TL investment funds, other than the exempt funds specified, will now be subject to a 10% withholding tax rate from November 1, 2024, onward.

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Changes to the Bulgarian VAT Law Implementing Regulations 💡 The Bulgarian Official Gazette June 25 published changes to regulations for implementing the VAT law. The changes include measures: 1) abolishing the special registration for the application of specified regimes under certain conditions; 2) providing importers the right to provide alternative proof to deduct tax credits for goods received in circumstances where the importer doesn’t have the specified proof of tax payment; 3) applying a zero-tax rate for taxable supplies of goods and services with a place of performance in Bulgaria; 4) specifying conditions for the application of the zero-tax rate; and 5) specifying that invoices, as well as notices to invoices on paper, are issued in a minimum of two copies, regardless of a recipients registration status under the law. The regulations enter into force on the same date. [Bulgaria, Official Gazette, 06/25/24]

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Andersen Global continues to strengthen its presence in Europe through the establishment of Andersen in Malta. Together, with existing member law firm Chetcuti Cauchi Advocates, the firms will provide a comprehensive suite of integrated tax, legal, and corporate services to private and business clients in Malta and internationally. https://ow.ly/jz8150UkYKg

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🇨🇿 In the Czech Republic, the insolvency proceedings is a legal proceeding concerning a debtor’s or impending insolvency and the method of its solution. Our experts have summarised the key proceedings and liabilities, to provide you a complex overview on the matter. Download our eBook for free below 👇 https://lnkd.in/e56nuHsH

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