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act on duties, local taxes

Changes in the Act on Duties and local taxes

| Wrote: Anna Póra
The local taxes and the Act on Duties have been changed in 2013 and will also be changed at the beginning of 2014.
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1. Changes in the Act on Duties

2013 mid-year changes:
Acquiring assets on the basis of a building society contract is exempt from gift and inheritance tax (as of April 21,2013).
Official certificate issued by the building authority acknowledging occupation is exempt from duty (as of April 21,2013).
Liabilities against a private individual released by a financial institution are exempt from gift tax if the release occurs under the principle of equal treatment for all those who are in the same position. To the exemption a certificate issued by the financial institution is necessary (as of June 30, 2013).

Changes in 2014:
Free transfer of assets between spouses is exempt from the gift tax as well as onerous transfer of property from duty.
Acquisitions for no consideration resulting from the termination of martial community of property are exempt from the gift tax. The same rule applies to the duty on onerous transfer of property if the acquisition is for valuable consideration.

Acquisitions related to receivables released under the arrangement of a composition or free as part of the liquidation proceedings as well as dividends receivables are exempt from the gift tax (except for receivables released by a member of an economic entity).

Change in the conditional exemption from duties of construction sites: the tax authority cancels the suspended duties also in case the official document certifying the fact of occupation supporting the construction of the dwelling-house  is drawn up not in the name of the purchaser who acquires the property but the person who simultaneously acquires the right of ownership or property rights (e.g. the right of usufruct). The new rules apply to the acquisition of property where the tax authority has not ruled finally on the payment of suspended duty until January 1, 2014.

Duty on acquiring contributed fixed assets: duty on onerous transfer of property is payable on the acquisition of contributed fixed assets existing in companies with domestic real estate property, regardless of the company’s main activity. Concept of company with domestic real estate property: a business entity in the balance sheet of which the value of domestic property makes up more than 75% of the total assets (excluding cash and cash receivables).
The above-mentioned changes will come into force on January 1, 2014.)

2. Changes in local taxes – business tax

2013 mid-year changes:
Taxpayers having a lorry of over 3.5 tonnes can deduct 7,5% of e-toll paid in the relevant tax year within the territory of the country and recognized as an expenditure (as of January 1, 2014).

Changes in 2014:
Entrepreneurs subject to itemized tax of small-tax paying businesses may declare within 15 days of the commencement date or until January 15 of the relevant tax year if they wish to fulfill their business tax obligation of the relevant tax year according to itemized tax base earlier it was possible only within 15 days of becoming subject to itemized tax of small-tax paying businesses).

Taxpayers not eligible for exemption or relief according to the municipal tax arrangements may also satisfy the tax return-filing requirements on a central form (according to decree 38/2008 of the Ministry of Finance).
Entrepreneurs starting their taxable business activities without a predecessor are exempt from paying business tax advance for the first period of business tax advance payment.
(The above-mentioned changes will come into force on January 1, 2014.)


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