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Dorina Asllani Ndreka The Albanian Parliament has approved the Law No. 8438, dated December 28 1998, which has entered into force since January 2014, regarding one of the most important taxes in Albania, the tax on income. This tax comprises the personal income tax, the profit tax and the withholding tax. From January 1 2014 the income tax rate is no longer 10%, but 15%. The income tax relates to incomes gained from sale of real estates, profits from commercial activities, interests or dividends, profits from copyright, etcetera. Apart from the change in the tax rate, there have been several changes to the personal income tax on employment salaries. The main consequence is the reduction of the overall tax on employment incomes for all salaries up to ALL130,000 ($1,250). This reform is implemented through a specific progressive tax scheme as shown in Table 1.

Andrés Edelstein

Donka Pechilkova On January 1 2014, Bulgaria took one more step forward to the synchronisation of the local Bulgarian legislation with the European one by passing changes in the Law on Value Added Tax by applying a special regime of cash reporting for Bulgarian entities. This kind of reporting is well known in more than twenty EU member states and they have proved their good results. The main principle underlying this regime is the VAT to be payable in the tax period when the company received payment, fully or partially, from its client but not when the related invoice is issued. Respectively companies, registered under this regime will accrue and deduct VAT of the preceding deals after payment to the supplier is executed. Once payment is executed a protocol for payment should be issued and based on this protocol the relevant amount will be included into the VAT statement for the related tax period. It is important to note the regime is applicable only for deals that have place of performance in the territory of Bulgaria, and is not applicable for import of goods, inter-community sales and deliveries; zero rated deals; deals between related parties and sales to non-registered under VAT regime entities. The regime does not have a mandatory character and Bulgarian companies can choose to register voluntary under this regime.

Tax departments around the world are facing growing demands to do more with fewer resources. Joel Walters, inbound tax leader for PwC US, explores how in-house teams can successfully navigate the new corporate tax landscape in light of increased scrutiny on tax planning processes, reporting requirements and compliance initiatives.

It would be an understatement to say that many large corporations have found their reputations dragged through the mud over their tax affairs.

Finance ministers from France and Germany met in Paris to discuss the future of the financial transaction tax (FTT). Officials from both parties will be hoping to find common ground with regard to the definition and scope of the proposal.

See who has done the tax work on this month’s biggest deals.

Dajana Topic Non-residents, either physical persons or legal entities, can claim all property rights including possession of real estate, in the same manner as the domestic residents on the entire territory of Bosnia and Herzegovina (B&H). Therefore, foreign investors are given full legal protection and undisturbed transfer abroad of their profits originating from investment in B&H. The Assembly of the Brcko District adopted the Decision on fixing the property tax rate at 0.05% for 2014. The Decision was accepted on December 4 2013 and published in the Official Gazette of Brcko District on December 13 2013.

Philippe Jeffrey

Sandra Benedetto