Government amends tax law to facilitate doing business

The government on Wednesday endorsed a bill of amendments to the General Tax Act aimed at creating more predictable and better conditions for doing business, Finance Minister Boris Lalovac said.

Under the bill, the Tax Administration will adopt binding opinions on the tax treatment of a taxpayer's intended transactions which cannot be changed during transaction. This, according to the minister, will contribute to the predictability of the taxing authorities and the legal certainty of investments.

Also, banks would have the duty to submit data on all kuna and foreign currency account transactions of a taxpayer at the specific request of the Finance Ministry.

Moreover, a taxing authority and a taxpayer would be able to sign a contract, for a maximum of two years, on the payment of overdue taxes.

Prime Minister Zoran Milanovic said it was important to provide the certainty and predictability of transactions so that entrepreneurs and investors could know at least approximately what awaited them.

The rules must be as transparent as possible because there is arbitrariness, if not even, unlawfulness, in taxation due to different interpretations and application of rules, he said.

(Hina) ha

News