Amendments to Personal Income Tax Act and Bylaw

The latest amendments to the Personal Income Tax Act, which came into force on 19 December 2013 (with an exception of the provisions concerning tax reliefs, which came into force on 1 January 2014) introduced the change in the tax treatment of stock option plans for employees, i.e. stock option plan are not considered as income from capital but as benefit in kind (income from employment) subject to tax at the rates applicable for employment income.

There is a new rule with respect to filing the annual tax return, according to which the Tax authority will, ex officio and without any time restrictions, initiate renewal of the procedure if a tax payer did not declare income in the annual tax return, which he should have submitted, and Tax authority was not aware of it. The renewal of the procedure will be initiated within 30 days from the day the Tax authority finds out that an income was not declared.

The amendments to Profit Tax Bylaw came into force on 31 December 2013.