Ministry of Industry and Trade completes OP TAC preparations

According to the Ministry of Industry and Trade, preparations for a new Operational Programme Technology and Application for Competitiveness (OP TAC) for the 2021–2027 programme period have been officially completed. The programme has already been…

Minimising sanctions: other options to reduce default interest

As a sanction associated with an additionally assessed tax, default interest can often be more severe than a penalty. Default interest waiver options, discussed in the previous issue of the Tax and Legal Update, are very limited where tax…

News in brief, September 2021

Last month’s tax and legal news in a few sentences.

New income tax credit

Recently published in the Collection of Laws, an extensive amendment to the Enforcement Procedure Code and Civil Procedure Code among other things contains an amendment to the Income Tax Act introducing a new income tax credit for taxpayers in the…

Intermediation in sale of extended warranties not to be excluded from coefficient…

The Court of Justice of the EU (CJEU) denied the full entitlement to VAT deduction to a company providing extended warranties during sales of goods. The sale of extended warranties may not be treated as a financial activity, ruled the court.

Fifth call under TREND

The Technology Agency of the Czech Republic (TA CR) will probably announce the fifth call to participate in the TREND programme, subprogramme 1 – Technology Leaders, only in December 2021. The original September date has been postponed due to the…

Lease of real estate via Airbnb considered business activity

The Municipal Court in Prague confirmed that the provision of short-term leases via Airbnb meets the criteria of a business activity. Consequently, income from this activity shall be included in a separate tax base as income from an independent…

Another step towards digitisation in corporate law

The Ministry of Justice has prepared a bill to implement into Czech law further changes arising from the EU directive as regards the use of digital tools and processes in corporate law. The related amendment to the Notarial Code has already entered…

SAC stands up for taxpayer over deducting costs of destroyed goods

The Supreme Administrative Court (SAC) upheld a taxpayer's cassation complaint in a dispute over the legitimacy of claiming costs/expenses for destroyed goods. According to the SAC, without informing the appellant the appellate body assessed the…

Changes in carer’s allowance and paternity leave

Ensuring equal opportunities for men and women and work-life balance have long been pressing issues on the European Union’s agenda, going hand in hand with the effort to allow fathers to be more involved in raising their children. One of the tools…

Disposal costs of part of new assets’ input price?

With judgment No. 10 Afs 346/2020-43, the Supreme Administrative Court (SAC) has significantly contributed to clarifying when the costs of disposal of assets may be deducted from the tax base directly, and when they constitute investments and shall…

New programme period: one trillion Czech crowns and simpler procedures for applicants

At the end of June, the Czech Ministry for Regional Development held a conference entitled “Green and Digital Czechia? But What About People…”, at which it presented the main goals and investment opportunities encompassed within the EU funds for the…