On June 24, 2020, the so-called anti-crisis Shield 4.0 regulations entered into force introducing to the acts on income taxes i.a. an episodic exemption from the tax on revenues from buildings and shortening the period after which a taxpayer is entitled to take advantage of the so-called bad debt relief.
On 11 June 2020 the Court of Justice of the European Union (hereinafter referred to as “CJEU”) passed a significant ruling in the Portuguese case C-43/19 (Vodafone Portugal – Comunicações Pessoais SA).
Hungary is a country located in Central Europe and member of the European Union as well as the Schengen Area. Today, Hungary is an upper-middle income country with a very high Human Development Index, which looks at life expectancy, education and the standard of living. The economy is largely driven by exports, making it vulnerable to external market shocks.
Beginning from 1 July 2020 the following tax changes enter into force in Poland:
MEPs approved a bill on the remission of social security contributions. The law expands the existing Antivirus program with a new regime C, which consists in the remission of social security contributions. It applies to companies with up to 50 employees. The MLSA thus provides additional targeted support to mitigate the effects of the coronavirus crisis in order to maintain the maximum possible number of jobs.
We have already written about the FE issue in Poland on our website. As proof of the existing problem about the FE in Poland, please find the new facts below. In June 2020 one of our foreign clients with the Polish VAT registration has received a negative tax ruling regarding FE for the manufacturing services which have been commissioned on entrusted materials to the Polish contractor.
In May 2020 the International Accounting Standards Board (IASB) issued an amendment to the IFRS 16 standard, which aim is to provide tenants with an exemption in assessing rent relief arising as a direct result of the Covid-19 pandemic. A tenant therefore does not consider the rent adjustments as leasing modification. On the other hand, no changes are made in the landlord's accounting as this simplification does not apply to them.
Beginning from 1 July 2020, new regulations regarding the taxation of the so-called chain transactions will come into force in Poland.
Association for Foreign Investment (AFI) published already fifth edition of its Business Guidebook: Czech Republic – The Country for Investment in Challenging Times. Guidebook is being issued since the beginning of 2016 when AFI´s celebrated its 20th anniversary. The purpose of this guidebook is to provide newly incoming and existing businesses with comprehensive information about investing in the Czech Republic.