Tax & Legal Update
Amendment to Asset Valuation Act to define market value
Draft amendment to the Asset Valuation Act submitted by the government to parliament aims to introduce a definition of market value as an alternative valuation method into Czech law. If passed, the new law should enter into effect on 1 January 2021.
Revolution in AML to affect all legal entities
With the implementation deadline for the fifth AML Directive approaching, preparations of legislative proposals transposing it into Czech laws are underway, including, among others, an amendment to the Czech AML Act (No. 253/2008 Coll. – Act on…
Class action lawsuits are coming to the Czech Republic. Retail better get ready!
A separate bill drafted by the justice ministry is to introduce the class action to Czech law, allowing holders (or purported holders) of identical or similar claims to assert these in court jointly, in single proceedings. This could mainly affect…
GFD admits a looser interpretation of transitional provisions on R&D allowance
The General Financial Directorate (GFD) published information on the application of transitional provisions of the tax package that entered into effect on 1 April 2019. It mainly concerns research and development allowances and regulates the…
Rate package to tax one-crown bonds
The government has passed a so called rate package aiming to boost public budget revenues. Some points were added to the finance ministry’s original bill, in particular the taxation of one-crown bonds. The proposed taxation of insurers’ technical…
Amendment to Investment Incentives Act passed by Chamber of Deputies
The new Investment Incentives Act reflects structural changes taking place in the economy since its last amendment in 2015. It introduces several modifications significantly affecting the process of awarding investment incentives: for instance,…
Are you ready for changes in the VAT ledger statement?
With the recent amendment to the VAT Act, the revised Instruction on Completing the VAT Ledger Statement entered into effect on 1 April 2019. Its most significant changes concern corrections to the tax base for irrecoverable debt. What to watch out…
VAT treatment of members of societies finally clarified?
In its May and June sessions, the Coordination Committee commented on the tax treatment of members of societies (former associations) without legal personality. A presentation from the side of the tax advisors dealt with the VAT treatment when…
New Instruction D-34 and translation of TP Guidelines
The financial administration is unifying procedures to determine tax bases affected by transactions between associated enterprises, both domestic and cross-border.
Watch out for tax inspections! Companies drawing investment incentives surprised by…
Apart from loss-making companies, tax administrators now systematically target transfer pricing in profit-making companies that draw investment incentives.
CJEU: new interpretation of EU social security regulations
The Court of Justice of the European Union (CJEU) ruled in a case concerning a social security system applicable to seamen. The judgement may affect determining the applicable social security rules for workers resident in the EU but working outside…