The lawmakers adopted changes to the Law on Tax Procedure and Tax Administration.
The most significant changes are as follows:
The second instance appeal will be lodged at the Ministry of Finance and not the local tax authority as it was done previously. The law makes a clear distinction between the first and second instance authority and the first instance authority will no longer have the power to make a decision regarding an appeal.
As of 1 July 2017, the local tax authority will cease making decisions on second instance appeals. All cases unsolved until 30 June 2017, will be transferred to second instance authority.
The Law on Tax Procedure and Tax Administration will become effective as of 1 January 2017.
Impact on Investors: A clear distinction between first instance and second instance authorities will harmonize local tax procedures in the region.