On August 1 2016 the permanent system with regard to fiscal and social adjustment entered into force.
Approval of the bill has been a long time coming. It was on this basis that the comments by the State Council were formulated regarding the division of powers between federal and regional government. Eventually it was decided that the adjustment of regional taxes would only be possible after the federal government enters into a corresponding cooperation agreement with the region in question.
As expected, the final publication of the legislation does not contain any significant new changes. The guidelines, as stated in previous drafts of the legislation, apply from August 1.
To find out more about fiscal and social adjustment, please contact one of our specialists at firstname.lastname@example.org.
We base our advice on current legislation, interpretations and legal doctrine. This does not prevent the administration from being able to challenge it or to change existing interpretations.