On 13. November 2018, the parliament has accepted the modification of the corporate tax law valid from 1. January 2019 according to which the corporate group taxation established by at least two companies can be considered as a resident taxpayer. The legal instrument is not new in the EU because the currently voted change is aimed at its harmonization with the provisions set out in a Council Directive of 2016.
The requirement for the establishment of the group taxation is that
- an associated enterprise relationship based on a voting right of at least 75% shall exist between the taxpayers,
- the balance sheet date of the group members set out in the accounting policy and in case of a taxpayer not obliged to prepare annual financial statements, the last day of the tax year shall be the same,
- the preparation of the annual financial statement and the accounting closing shall be carried out unilaterally or according to chapter III of the Act on Accounting or according to the IFRS at all group members, and
- the currency of the accounting of the group members shall be the same.
The establishment of the group taxation and the future accession to this shall be subject to the permission of the tax authority. Besides increasing the competitiveness of the economy, the group taxation provides several advantages for the companies realizing the above because within the group, not only the profit but also the loss can be optimized in the future and simultaneously with it, all members of the group may enjoy the advantages of the tax benefits acquired by the members.
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