TAX LAW CHANGES 2021
6.
Local business tax
As of 1 January 2021, the Local Tax Act explicitly states that corporate taxpayers are required to apply the arm’s length prices to related party transactions if the transactions affect either net sales or net revenue-reducing costs or expenses. In addition, the local business tax base will be reduced by the amount of the arm’s length price adjustment if a statement from the related company involved in the transaction is available that an amount of the same amount deducted has been taken into account as an increase in the local business tax base.
If the affiliated company is not subject to the local business tax, the taxpayer must declare that it is included in the foreign tax corresponding to the local business tax or, in the lack of that, in the corporation tax or the similar corresponding foreign tax. Thus, the regulation of the local business tax overtakes the logic operating in the corporate tax.
From 2021, the return (including self-audit and corrective returns) will have to be submitted electronically, not to the municipal tax authority, but only to the state tax authority, this time with uniform data on the registered office and all sites.
According to the Accounting Act, errors discovered by self-revision or tax authority audit must be taken into account in the local business tax return of the year of disclosure. (This change already applies to the 2020 tax year).
From 2021, the temporary local business tax liability after construction activity will no longer exist. Construction activities carried out for more than 180 days within the tax year continue to create a permanent business premises in the given settlement.
As of 1 January 2021, in the case of leasing and leasing a car, the asset value of these cars shall be shown in proportion to the personnel expenses incurred at the registered office or premises.
