Bureaucracy

  • Sunset clause – any new regulation having an impact on the business environment will have an automatic three year expiration period attached. For possible extension of this period, the parliament will have to vote the law after three years again. The aim is to prevent the gradual accumulation of bureaucracy without evaluation of its results.
  • One-for-one – a proposal of any new regulation having an impact on the business environment will have to be paired with a proposal to cancel one existing regulation. The aim is to stop the constant growth of government bureaucracy, but without blocking ability to perform the desired policy.
  • Introduce a 1€ Ltd.. – reduction in the minimum equity to € 1 for all Ltd-s. The existing 5000 EUR limit is being followed only on paper and many SME start with real equity close to zero.
  • The possibility to use the single point of contact (PSC) also for the communication with Social Insurance Agency – Enable the registration of an employer with Social Insurance Agency through PSC. PSC will report the newly established company to the register of employers if the entrepreneur wishes so (plans to immediately hire employees). Enable entrepreneurs – employers do the required reports to the Social Insurance Agency via PSCs.
  • Reduce the number of licenced trades types – there are currently 34 types of “bound trade licences” and 85 types of “craft trade license”, both requiring a self-employed person to pursue an official certificate of skills before registering the business. In many cases there are only the formal requirements, which do nothing to denounce the quality of the work. At least those that do not endanger the health or safety of customers and their property, but only their satisfaction, can be excluded and left to the assessment of the quality by customers.
  • Abolishing the obligation to repeatedly demonstrate the capability to perform a particular trade – If the entrepreneur met the requirements in the past (but later closed the business), there is no meaning in asking the same documents again.
  • Introduce the so-called. “Open trade license” – entrepreneur would receive authorization to do business in any field which is not included in “craft” or “bound” types of licence trades. Currently, self-employed have to specify all trades they plan to perform, even if these have no further formal requirements to fulfil. Many self-employed than end up with dozens of trades listed “just in case”.
  • Establish permanent vehicle registration number – at the time of the central electronic register has the change of EVN in connection with the change of owner’s resident district no practical significance. Most Western countries have a number plate permanently attached to the vehicle, regardless of the change of the ownership.
  • Voluntary provided meal vouchers – obligatory mealvouchers represent financial and administrative burden. It lowers fully disposable income of employees. An alternative would be to tax-free cash payment of meal contribution. More in our study.
  • Audit of all reports and statements, and the subsequent introduction of a single public web page for their administration, with one common deadline for filing – most business owners do not know all their reporting responsibilities. These obligations are scattered throughout many public institutions. Establishing a single system would make their life easier while allowing identifying and eliminating duplicate or completely unnecessary statements and reports.
  • Minor changes of the bureaucracy – here, we have included a couple of smaller measures:
  1. Deadline for submission of documentation requested by the tax authority increased to 30 days.
  2. Option of retaining VAT max. for three months during tax audit.
  3. Shorten the deadline of PSC (single point of contact) from 3 days to 1 day
  4. The abolition of driver compulsory regular re-training. (abolished in 2018 by issuing new clarification notes)
  5. Internalize the approval of the tax authorities to the registration of new enterprises. Currently entrepreneur must support the approval of the tax authority that the tax outstanding debts do not exceed € 170. This should be an internal matter for the authorities (alternatively, cancel the obligation altogether).
  6. The introduction of online assistant for filing tax returns of individuals – existing electronic tax forms with automatic calculation is the improvement over ordinary paper version, for many individuals and business owners but is still complicated and nowadays also considerably outdated. A simple web application that would be the taxpayer demonstrated step by step filing tax returns would make life easier for many and its creation would require a negligible cost.
  • Check-out employee from the Social Insurance Agency within 8 days – the current one day period is too unnecessarily restrictive, especially for small employers who do not have the financial and administrative capacity to deal with all the agenda immediately. Period prolonged since 1.1.2018.