Archive

CROATIA

Amendments on General Tax Act – Enacting of these Amendments is part of the Croatian Government’s April measures for supporting the economy in the situation of coronavirus pandemic. Here are some of the most important novelties:

• taxpayers who are, during the period of „special circumstances,“  granted with the benefits of co-financing in order to preserve jobs and salaries for the employees, can be released from the obligation to pay public disbursements;
• if business activities of the taxpayer were forbidden by the decisions of the competent authority during „special circumstances,“ or they were disabled or significantly impeded, it can be completely or partially exempted from the tax obligations;
• during “special circumstances”, deadlines and payment obligations for value added tax,  enforcement measures, interest rates and procedural provisions can be arranged differently than prescribed by the provisions of this Act or by special tax regulations in case of importation and regarding donations.

Minister of finance, as prescribed by this amendment’s provisions, is authorized to enforce relevant amendments of the Ordinance further implementing described Act’s amendments. 

Amendments on the Accounting Act – Enacting of these Amendments is part of the Croatian Government’s April measures for supporting the economy in the situation of coronavirus pandemic. Here are some of the most important novelties:

• defying the term of “special circumstances” in this Act for the purposes of implementation this Act’s amendments
• during the special circumstances, the Minister of Finance, in the respective Ordinance, may prescribe the deadlines for the publication of the separate non-financial report and the consolidated non-financial report, for annual report with the accompanying audit report which is usually submitted to Financial Agency for public announcement; for submitting the statement on inactivity, for reports on consolidation commitments and other reports prescribed by the provisions of this Act.

Amendments on the Enforcement on Monetary Funds Act – New provision has been introduced regarding implementation of EU legislation in the Croatian legal system – directive and regulation with the matter concerning anti-money laundering;  other than that, competent courts will be able to contact the Financial Agency with the relevant documentation for the commencement of the enforcement procedure; enforcement of the fines imposed by the Croatian National Bank is prescribed now; certain nomotechnical changes were made regarding the set of information that Unified Account Registry has to have and linkage to terms and the concept of the beneficial ownership and the respective registry of beneficial owners has been introduced; there is also a part of the amendment that allows the Office for the prevention of money laundering to have unlimited free access to the information of the Financial Agency; there is also a change proposed for the erasure of data of customers after 10 years, and the set of information that the Financial Agency has and makes available is corelated to the national data protection regulation. Minister of finance will implement these amendments in the respective Ordinance in the further period of 90 days; the Regulation from January 3 regulating these topics until now has been revoked by these amendments.Also, some very important changes have been introduced that will have high impact on B2 Kapital’s business. Here are some of the most important novelties:

• new provisions are introduced named Activities of the Agency in special circumstances
• term of special circumstances has been applied same as in the tax regulations enacted in previous period;
• during special circumstances the Agency will suspend the enforcement on monetary funds against the natural persons;
• during special circumstances the Agency will accept the prepositions for enforcement over monetary funds with payment bases but will not execute them. They will just be evidenced the registry of payment bases;
• if, during special circumstances, conditions are met for the transfer of monetary funds that have been seized in the previous period, such transfer will be enforced to the creditor’s account upon Agency’s order to the respective banks;
• during special circumstances – default interest will be suspended as well;
• special circumstances will last until the expiration of 3 months period after Act amendment’s entry into force (‘till July 18, 2020);
• this term may be prolongated by the Government’s decision for further 3 months period (until October 18, 2020 at the latest);
• Ministry of finance will perform the legislation’s post impact assessment in the period of 2 years from the day this Act amendment’s enter into force.

SLOVENIA

Act Amending the Interim Measures Act in Relation to Judicial, Administrative and Other Public Law Matters to Control the Spread of an Infectious Disease SARS-CoV-2 (COVID-19) – COURTS: Courts where work has almost completely stopped during the epidemic of the new coronavirus will soon resume service of non-urgent cases (according to the ZZUSUDJZ-A). However, since the deadline does not run during the epidemic, the parties who receive the court’s decision will not have to do anything. In accordance with the order of the President of the Supreme Court of the Republic of Slovenia, all courts have been holding hearings since March 16, and ruling only in urgent cases. Since March 29, The Act on Provisional Measures on Judicial, Administrative and Other Public Law Matters to Control the Spread of the Infectious Disease of Covid-19 is in force, which determines, that the court deadlines are not running until revoked. Courts currently only handle urgent procedures, but in the meantime the courts have also done a great deal of non-urgent cases. The proposed new act will thus enable the courts to communicate their decisions in non-urgent proceedings to the parties to the proceedings. The Minister of Justice said that the deadlines would not run. “The party who will receive the court’s decision is therefore under no obligation to do anything.“

COURT EXECUTIONS/EXECUTION PROCEEDINGS: In the area of executions, the court will now be able to issue enforcement and insurance orders and deliver them to clients in non-urgent cases that began before the epidemic. The debtor will be able to voluntarily settle the debt or file an objection if he believes the decision is not justified, but as long as an epidemic is declared, he is not obliged to do any of this (the deadlines will not run), the Minister of Justice explained

CIVIL AND LEGAL PROCEEDINGS: Similarly, in the area of classic litigation process – the court will be able to deliver the judgment and also serve it on the parties if they have completed the main hearing in non-urgent litigation before the measures are instituted. “The judgment will be served, but the deadlines will not run,” the Minister of Justice explained.

INSOLVENCY PROCEDURES: In insolvency proceedings which are not running at the time of the epidemic, new proceedings will still not be initiated, but those proceedings which were initiated before the epidemic may continue, should the President of the Supreme Court so decide.

LAND REGISTRY ENTRIES: Courts will also be able to rule in land registry cases, which are also a matter of non-urgency cases.

ADMINISTRATIVE BODIES: Decisions, as well as other documents in non-urgent matters, will now also be available to the administrative authorities. Service will be affected in the inbox so that no contact can be made between the service provider and the addressee. The client will not have to do anything but will be able to continue the process. Once approved by the National Assembly, oral hearings will again be possible in non-urgent matters. However, the Authority will have to ensure that the possibility of spreading the viral infection does not occur, thus protecting the health and life of the participants in the procedure.

Act to provide additional liquidity to the economy to mitigate the effects of the COVID-19 epidemic (ZDLGPE) – The Act contains measures to provide the necessary liquidity to the Slovenian economy in order to mitigate the consequences of the epidemic and prevent serious economic damage, namely through bank loans secured by the guarantee of the Republic of Slovenia. The main measure is a guarantee of the Republic of Slovenia to banks or savings banks domiciled in the Republic of Slovenia or to branches of banks of a Member State domiciled in the Republic of Slovenia.

SERBIA

Regulation on Fiscal Benefits and Direct Benefits to Private Sector Companies and Financial Assistance to Citizens in order to alleviate the Economic Consequences of COVID-19 – The regulation prescribed conditions and means to use economic measures of the government (delaying payment of payroll taxes, financial help in the form of minimum salary for each employee).

Regulation Amending the Regulation on Fiscal Benefits and Direct Benefits to Private Sector Companies and Financial Assistance to Citizens in order to alleviate the Economic Consequences of COVID-19 – The regulation determines the number of employees as the basis of which the right to direct benefits is exercised. The regulation also determines a deadline for private companies within which government economic measures can be used.

Regulation establishing a program of financial support to business entities for maintaining liquidity and working capital in difficult economic conditions due to the COVID-19 pandemic caused by the SARS-COV-2 virus – The regulation prescribes conditions for giving loans to legal entities with favorable conditions (at 36 months with an interest rate of 1% per annum).

Bosnia and Herzegovina

Act on Amending the Profit Tax Act – Court deadlines for filing a lawsuit, initiating extrajudicial proceedings or enforcement proceedings or other time-bound motions cease to run. At court hearing the judge can limit or temporarily, partially, or completely exclude the presence of the public.