• Tax Highlights- August 2018

Tax Highlights- August 2018

14 August 2018

New rules related to employment of foreigners

Based on Article 28, Paragraph 3 of the Law on Employment of Foreigners, Minister for Labour, Employment, Veterans' Affairs and Social Issues adopted on 2 August 2018, new Rulebook on Work Permits which is applicable from 25 August 2018.

Main reason for adoption of new Rulebook is to decrease time needed for obtaining work permits for foreign persons and to harmonize regulations related to their issuance with the provisions of the law regulating general administrative procedure.

A review of the novelties related to the issuance of work permits for foreigners is given below:

  • The request for the implementation of the labor market test conducted by the National Employment Service in the procedure for issuing a work permit for the employment of a foreigner, shall be submitted by the employer, at earliest 60 days, and no later than 10 days before the date of issuance of a work permit for employment.
  • The duration of the labor market test has been reduced from 30 to 10 days.
  • The period within which the employer is obliged to notify the organization responsible for employment affairs on the action after the received report on the labor market test is 3 days instead of the previously prescribed 15 days.
  • Evidence containing data on official records (e.g. birth certificate / marriage certificate, permanent residence or temporary residence permit, decision on the employer's registration in the registry of the competent authority, etc.), the National Employment Service now acquires at official duty.
  • An obligation has been introduced that the the request for extension of work permit for assigned employees and request for extension of work pemit for movement within the company is supplemented by the approval of the ministry competent for employment issues.

The recommendation of the National Employment Service is that the documents, containing the data kept on the official records of other competent institutions, are obtained independently, as before, as the procedure for obtaining a work permit would not last too long.


Beginning of application of Tax Procedure and Tax Administration Law provisions related to obligation of informing Tax Authorities about business premises

Amendment to the Article 25 of the Law on Tax Procedure and Tax Administration, introduced the obligation of the taxpayer to submit within the prescribed deadline the registration application of data on all business premises in which it stores or places goods, as well as the premises in which performs the registered activity, unless in accordance with this Law and other regulations, this information has already been provided to the Tax Administration. This legal provision has been in place since 27 August 2018, when also arises the obligation to submit the above data to the Tax Administration.

The above data is submitted to the Tax Administration on the PEP-IPJ Form - Record of the separate business units of business entities and warehouses, published on the website by the Tax Administration, together with the Technical instruction for the recording of separate business units of business entities.

The tax return on the PEP-IPJ Form is submitted exclusively electronically via portal e-Porezi. The taxpayers who already submitted the information in the written format, are obliged to submit these data electronically.