Act on the Amendments to the Profit Tax Act
▪The withholding tax for tax and business consulting services, researched markets and audits is abolished (except when those services are paid to entities based in countries that are on the EU list of non-cooperative jurisdictions).
▪ Affiliated companies of different EU member states that do not meet the condition of minimum retention of shares for an uninterrupted period of 24 months, can exercise the right to non-taxable payment of interest and royalties if they provide an appropriate guarantee.
▪ Exemption from withholding tax on interest, royalties, dividends and profit shares is extended to residents of the European Economic Area (Norway, Iceland and Liechtenstein), in addition to the residents of the EU member states.
▪The withholding tax rate is increased from 20% to 25% for payments to entities based in countries that are on the EU list of non-cooperative jurisdictions.
▪The threshold for determining fixed assets is increased from EUR 464.53 to EUR 665.00, but only for the purpose of determining corporate income tax.
▪ Tax-deductible gift expenses in the amount of 2% of the income realized in the previous tax period are now extended to 2% of the income realized in the current period.
Please keep in mind that legislation tends to change frequently. This article is therefore necessarily based on our understanding and correct interpretation of the law and practice at the time of issuing this atricle. This article will not be updated due to changes in legislation that occur after this article is published.