Common Tax Account – Options
After the Constitutional Court’s decision on the abolishment of the common tax account and the need for adequate reaction from the institutions, an official announcement was made about the possible new features and options given the circumstances. Thus, some light was shed on the exact way tax and insurance duties payment will be executed.
The Finance ministry and NRA presented two possible solutions in this situation. The idea is attainment of legislation conformity with the Constitutional Court’s decision and simultaneous preservation of duty collection optimization.
Introduction of four separate accounts for the payment of state budget, social security, additional mandatory social security and healthcare duties. That is a way to achieve separation of the transfers to insurance and state budget institutions in accordance with the court’s decision regarding the constitutional insurance rights of all citizens, but also to ensure the continuation of the current chronological duties pay-off. (i.e. from the oldest to the newest duty). A major disadvantage of this option is the bureaucratic complication of the payment procedure (practically – re-introduction of the previous payment regime) as well as the higher bank tax costs of the separate transactions (additional burden for businesses and people).
Preservation of the common tax account, but introduction of four separate payment codes. This will satisfy the court’s decision (the ultimate goal of the discussed innovations), but will also prevent further bureaucratic procedures complication. However, this option will also accumulate new bank tax costs (currently an inevitable scenario).
The government’s idea is one of the two options to be implemented within short terms after parliament approval. A transition period in this regard seems logical, but the overall expectations suggest an easy and smooth implementation of the new legislation with no delay or misunderstanding within the ongoing tax campaign.