Tax changes in neighbouring countries

Deloitte’s tax department collected the most important changes in the tax regulations of countries in Central and Eastern Europe. Some of these may have an effect on Hungarian companies operating in these countries. The government in the Czech Republic is raising the minimum wage year after year, in order to vitalise the labour market. Tax authorities pay special attention to the tax declarations of those individuals who also report income from abroad. In Croatia it has become simpler to pay the taxes on capital income, due to the new rule that the tax only has to be paid by 31 January in the year following the tax year concerned – formerly it had to be paid within 8 days after realising the income.

In Romania as of 1 January 2016 foreign workers posted in the country become tax subjects in Romania from the moment they meet the requirements of qualifying as domestic workers. In Serbia the government wishes to motivate employment by offering various tax cuts and social security contribution payment reductions to employers if they recruit new workers. For instance those SMEs that employ at least two new workers are entitled to reclaim up to 75 percent of the income tax and social security contributions paid on behalf of them. In Slovakia there is a single 19-percent tax rate for income on capital – both foreign and domestic – as of 2016. /