The following press-release by Ferenc Kölber, a partner in Baker Tilly Hungária, underscores our observation made recently in these columns that finally the profession is growing again in Central Europe. He writes:
Baker Tilly Hungária is pleased to announce recent successful collaboration with member firms. These included a number of payroll, accounting outsourcing, tax advisory and compliance services assignments.
As a result of these tenders, Baker Tilly Hungária reached a milestone of 1,000 people on outsourced payroll. A new payroll outsourcing service for a manufacturing entity of a large international client helped these figures. This client employs 300 staff in Hungary, generating approximately €28,000 in annual revenue for the firm. However, the firm is hoping to soon exceed this milestone with tenders for payroll of 140 and 1,400 staff also underway, the latter is for a client currently being served by Baker Tilly Czech Republic.
Ferenc Kolber of Baker Tilly Hungária also recently led a successful tender for the tax advisory and compliance service for Olajterv, an international oil and gas company, across 24 countries. The development of a strong offering resulted in this substantial win with Poland already transitioned with full scope accounting and payroll services together with tax advisory and work in Libya and Kazakhstan commencing.
Baker Tilly Hungária believes the success of these tenders resulted from the close working relationships and the quality of service delivered by member firms. This has created opportunities for referrals in other countries as well as the ability to participate in larger tenders for international clients.
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Baker Tilly Poland’s consulting division, teamed up with specialist lawyers in the IP area is now offering a service of outsourced administration of your IP rights – it’s based on a meeting at which they analyse all the possible identifiable rights that have value in your organisation or enterprise and ensure that the protection of them is properly organised – from registering trademarks and preparing patent registrations in a range of international jurisdictions though to ensuring that you get a good deal on pursuing those who infringe your rights. For more details write to Tomasz Ataman on firstname.lastname@example.org
Please find below information regarding the Czech per diem as well as other travel expenses, correct as at the close of 2012 going into 2013, courtesy of Baker Tilly Czech Republic’s Head of Tax Lucia Rablova.
The new aspect is the obligation to reduce meal allowances when a free meal was provided.
The minimum statutory rates of meal allowances in case of domestic business trips are shown in the following table:
|Period of domestic business trip in calendar day||Meal allowances according to the decree||Obligatory reduction for 1 free meal|
|5 – 12 hours||min. CZK 64 (max. CZK 76)||up to 70%|
|12 – 18 hours||min. CZK 96 (max. CZK 116)||up to 35%|
|more than 18 hours||min. CZK 151 (max. CZK 181)||up to 25%|
The minimum statutory rates of meal allowances in case of business trips abroad are shown in the following table:
|Period of domestic business trip in calendar day||Meal allowances||Obligatory reduction for 1 free meal|
|less than 1 hour||———||——–|
|5 – 12 hours||1/3 of basic rate||up to 70%|
|12 – 18 hours||2/3 of basic rate||up to 35%|
|more than 18 hours||the basic rate||up to 25%|
Naturally, an employer may provide meal allowances to a higher amount, i.e. may set a higher rate of meal allowances or may claim reduction in lower than the statutory rate. From the corporate income tax point of view, the full amount of meal allowances is tax deductible. However, any difference between actually paid meal allowances and statutory provided maximum limits for employees in the public budgets sphere (see column II in table 1 – max. amount) is subject to personal income tax from dependent activities and is counted also for social and health insurance computations.
- CZK 3.70 per km and petrol usage reimbursement (price according to the receipt or average price according to the annually issued decree may be used)
- by receipt
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- Marianne Memorial – Terezin, Czech Republic (travelpod.com)
I intercepted today one of the best letters an accountant could possibly write to a troubled client. The client, whom I’ve remained Bill, wanted to go for a court appointed liquidator in East Europe assuming that some equity would apply as it does, at least in theory, in UK law. The accountant, whom I’ve renamed Ben, gave the client the benefit of his experience and we both agreed that I could share this with the Quoracy.com subscribers. By the way, the part about the liquidator driving the best car comes from a real case and in that particular case the liquidator is still driving it four years later and delaying the closure of the liquidation simply to prolong his free ride! There are many such cases, but that one took the biscuit. One other time I’ll tell you about what happened to a certain German tourist’s car in Belarus. But that’s another day. For now, enjoy and take note from Ben’s letter to Bill:
The Receiver will recover for himself first, including making a reserve for all future costs. He will ensure that he has money to run the liquidation including the wages of the employees he keeps on, security people, light and heat etc. He will drive the best of your cars, at the expense of the receivership, and sell it last.
Yes, the chargeholder may wait for years and have nothing in the end because there are preference creditors before him. The Receiver will sell the best stock first to satisfy his appetite and the most important creditors such as employees and taxes. This means he does not sell systematically nor is he in a hurry to finish if there is cash about. If he gets good prices then there may be money to distribute to the secured creditors. If he does not get good prices the banks will end up with the worst stock that will be given to them to take away or it will be sold by the weight to someone that gives the best price per ton. The Receiver will not work hard if there is little money at the end of the rainbow.
You need to estimate what the receiver will take and the costs to liquidate. This means the redundancy costs and costs to dispose of the outlets and stock which includes retaining some warehouse staff, bookkeeper, security upkeep costs (light and heat) etc. need to be considered in your schedule.
The receiver will keep his direct and indirect paymasters happy, ie the court and tax office. As employees rank higher than the tax office he will satisfy these as well.
The receiver will only hand out any surpluses, after the above, first to the secured creditors. What do you think will be left to distribute?
That’s quite an eye opener, isn’t it? Don’t let it get that far – if your business is starting to go down, get proper advice on time, from a reputable, international accounting or law firm.
The name of Baker Tilly Czech Republic’s Lucia Rablova will be familiar to those of you following her award-winning tax alerts and business newsletters for the Czech Republic syndicated here on this service. This week she was awarded her certificate for ACCA and also a prize for achievement by ACCA’s Katka Benesova in a ceremony in Brno. We have managed to obtain for publication some images of this prestigious moment. Well done, Lucia and thanks for all the content!
Immigration into Central European countries was never a friendly and comfortable matter but after the entry of countries in the Poland-Czech-Slovak area into the EU at least things got easier for those of us who are from other EEA countries living in this region. However, for those coming in to do business in this area who are not Europeans, matters only got worse. On the one hand the Schengen rules, which are among the strictest in the free world, apply to these countries now, and on the other the way that rules which are supposed to be international are actually applied in practice differs still to a degree from one member state to another.
If you are, or are sending, an important manager to live in Central Europe, you probably wouldn’t want for them to suffer the consequences of going through the immigration processes unaided. People have been known – still are known – to camp outside of the relevant office half the night in order even to see an official and progress their matter. Then when they do see an official they cannot expect that person to speak anything other than the local language. It is time-consuming, and the results can also be unforeseeable also. And what do you do if you are not successful?
Avoid these headaches with a professional immigration service run by professionals specialising in this area. Quoracy can co-ordinate the entire matter, whether we are talking about one person or a team of immigrating workers.
If interested, please fill in the below contact form without obligation.
- Capita gets migrant removal job (bbc.co.uk)
- Ministers call for stronger EU foreign policy chief (euobserver.com)
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- Slovakia Bans Sale Of Czech Hard Alcohol (rferl.org)
- Alcohol beverages kill tourists in Poland and Czech Republic (english.pravda.ru)
- Poland bans sales of Czech alcohol after bootleg booze claims lives (euronews.com)
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