Taxation of Foreign and Local Natural Persons under Labour

The obligation for taxation of income from labour relations is assigned to the very persons, recipients of the income, the obligation for calculation, deduction and payment of the tax however is delegated to the employer, who acts as a revenue authority. Pursuant to Art. 18 of the TSIPC any person liable by law to withhold and pay in tax or mandatory social insurance contributions, who fails to withhold such tax or contributions, shall together with the holder of the obligation, be jointly liable the for the tax or social insurance contributions that have not been withheld and paid. In cases where the person has withheld the tax or mandatory social insurance contributions but has failed to pay them, such person shall owe the tax or social insurance contributions not paid in, while liability of the holder of the respective obligation shall be discharged.