Municipal Court holds protective measure contrary to law - rules for returning from…

On Wednesday 31 March, the Municipal Court in Prague annulled part of the protective measure regulating the crossing of state borders, on the grounds of it being contrary to law, effective 5 April. The Ministry of Health responded on Saturday by…

Waiver of sanctions for late filing of 2020 income tax returns

With respect to the persisting effects of the SARS-COV-2 pandemic, the Ministry of Finance has issued another liberation measure that under certain conditions waives the penalties charged to taxpayers for the late filing of income tax returns for…

New COVID-related business support programmes

The government announced new programmes to support business activities: COVID – Uncovered Costs and COVID – 2021. Applications will again have to be submitted through the Ministry of Industry and Trade’s Agenda Information System (AIS MPO) portal as…

New arrival rules for the Czech Republic

Since 1 March, a new protective measure of the Ministry of Health has been in effect, yet again tightening the rules for arrival from abroad and changing the existing ‘traffic light’ system (Semafor). For the purposes of this measure, foreign…

Transfer pricing - comparability analysis in times of COVID-19

The unprecedented changes in the economic environment following the outbreak of COVID-19 have created unique challenges for setting prices in intra-group transactions. The correct setting or verification of transfer prices for the past year while…

Obligatory testing of employees

On 1 March 2021, the Ministry of Health issued an extraordinary measure, ordering the obligatory testing of employees at companies. The measure is effective from 3 March 2021 until further notice.

Waiver of VAT on COVID-19 vaccines, tests, and respirators

The Minister of Finance has decided to waive VAT on supplies of in-vitro diagnostic medical devices for COVID-19 testing and COVID-19 vaccinations. The decision shall be in effect from 16 December 2020 to 31 December 2022 and has been published in…

Third call to apply for COVID – Rent support

The COVID - Rent programme, partly compensating for rent-related expenses for selected retail outlets and facilities providing services, will open for the third time. The third call directly follows the previous call. Moreover, the deadline for…

OECD on loss situation due to COVID

Lower levels of demand. Disruptions to supply chains. Increases in exceptional, nonrecurring operational costs. These are the key factors which have led to a loss situation faced by many companies of multinational groups during the COVID-19 pandemic…

Old/new programmes to support employers at the time of the pandemic

At the turn of December and January, the government approved a series of compensatory measures with a total value of CZK 10 billion. Some compensatory measures are brand new; other represent only extensions of existing ones. Below we summarise those…

OECD guidance on the transfer pricing implications of the COVID-19 pandemic

The unique economic conditions arising from COVID-19 and government responses to it have resulted in challenges for the application of the arm’s length principle. To enhance tax certainty in the face of such challenges, the Organisation for Economic…

Losing Antivirus contributions owing to formal errors

The Antivirus Programme is considered one of the most successful and best performing support programmes that the government introduced during the pandemic. According to statistics published by the Ministry of Labour and Social Affairs at the end of…