Tax & Legal Update
Ground-breaking judgement: vacation compensation to be included in R&D allowance
The Regional Court in Hradec Králové issued judgement No. 31 Af 23/2016-76, dealing with tax allowances for research and development (R&D allowance). The judgment is truly ground-breaking, as it rejects the standpoint so far taken by the tax…
Retaining undisputed portion of excess deduction held unconstitutional
Last week, the Constitutional Court issued a judgement reversing the Supreme Administrative Court’s negative standpoint to a partial refund of an undisputable portion of excess deductions. According to the Constitutional Court, retaining the…
Brexit to change application of withholding tax and securing of tax
The United Kingdom has been trying to reopen the negotiation of the Brexit agreement with the EU, so far without success. If the agreement is not approved by the British parliament, a no-deal Brexit appears likely. The Czech Republic has prepared…
Hard Brexit’s effect on UK citizens’ employment and residence in the CR
At the end of March, two years will have elapsed from the moment the United Kingdom announced its intention to withdraw from the EU. If the British parliament does not approve the agreement on the conditions of the withdrawal by that time, the…
Concerns about new whistleblowing regulation
A bill on the protection of whistle-blowers is another attempt currently discussed by the government to regulate whistle-blowing (i.e. exposing any kind of information or activity deemed illegal, unethical, or not correct within a private or public…
Revolution in providing information to investors?
In February, the European Supervisory Authorities (ESAs) disclosed the results of a public consultation regarding the essential elements of key information documents (KIDs). These are obligatorily provided to retail investors in compliance with the…
Personal Data Protection Office on when to perform a DPIA
When does it become necessary to carry out a data protection impact assessment? The Personal Data Protection Office attempts to answer this question with its List of Types of Personal Data Processing Operations Subject to Data Protection Impact…
TREND – a new programme to support industrial research
The National Research and Innovation Strategy for the Czech Republic’s Smart Specialisation (National RIS3 Strategy) is preparing an entirely new programme to support applied research and experimental development. The TREND programme builds upon the…
Amendment to VAT Act: Are meal vouchers liable to VAT?
The tax package returned by the Senate to the Chamber of Deputies, to be discussed again on 12 March 2019, contains, among other things, the implementation of the Vouchers Directive. This directive regulates the rules under which the VAT regime for…
Tax package 2019 – Senate propose changes
What is the stage of the 2019 tax package in the legislative process? Late in January, the Senate returned the bill to the Chamber of Deputies with amending proposals. Below, we summarise the most important ones.
Transfer prices and audits of financial statements
The beginning of each calendar year traditionally entails intensive work on audits of financial statements. Among multinational corporations in particular, accounting issues are very often closely connected to an audited entity’s cooperation with…