As with previous years, this publication has one main aim: to provide investors with timely, focused and mission critical information about tax in the CEE countries, thus enabling them to compare various competitiveness factors across the region.
The 2016 edition presents a snapshot of the tax environments of Albania, Austria, Bosnia and Herzegovina, Croatia, Czech Republic, Estonia, FYROM, Greece, Hungary, Latvia, Lithuania, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine.
The survey covers the corporate taxes and other direct taxes, as well as the indirect taxation. The brochure also provides the opportunity for comparison about tax rates, as well as of the rates of labour-related costs as compared to the net salary.
Instead of fundamental tax reforms, the focus has shifted in recent years to two areas, not only on the regional level, but also across the EU and OECD countries.
An increasing number of countries in the region have recognized the importance of concentrating on cross-border transactions. Transfer pricing regulations have appeared in the tax systems of almost all countries in the region, and in the guide MAZARS has devoted a separate summary table to this issue.
The tax competition between the various countries of the region has entered a new phase: after previously competing to ensure favourable tax environments, they are now attempting to cooperate in an effort to keep tax fraud at the lowest possible level and to maintain tax revenues, as this is key, in the long run, to reducing tax burdens and thereby improving the investment environment.
An important initiative is the introduction of the reverse charge mechanism for VAT as far and as widely as possible.
The Ukrainian invoice registration system introduced as an experiment in 2015 is now a permanent element of the country’s VAT regulations. The purpose of the system is to restrict VAT refunds to registered electronic invoices, and only with certain conditions. The Ukrainian tax administration will maintain a VAT account for taxpayers, and invoices with VAT may only be issued in a certain maximum amount that can be calculated in advance.
Full survey is available to be downloaded below.
We hope and trust that our readers will find this brochure useful and inspiring.