Tax & Legal Update
Subsidy opportunities for entrepreneurs in 2019
The time schedules for calls planned in 2019 within subsidy programmes have been published. Below we provide a short overview.
2019 amendment to the VAT Act: What changes may the amending proposals bring?
An amendment to the VAT Act, with planned effectiveness during the course of 2019, has recently passed through the second reading in the Chamber of Deputies. Below we present a number of submitted amending proposals.
Seven tax news items for employers and employees in 2019
The maximum assessment base for social insurance and the minimum wage will increase, which will also affect other mandatory payments and tax credits. The waiting period, i.e. the first three days of a temporary inability to work during which…
Do you have a subsidiary? Beware of indirect shareholding costs
Taxpayers have two options in treating the indirect costs of holding a share in a subsidiary: either to prove their actual amount, or to apply a legal simplification and exclude an amount equal to 5% of dividends received as a non-deductible expense…
CJEU: entitlement to claim VAT deduction for failed investments
The Court of Justice of the EU dealt with this question in the Ryanair case. In October 2018, the court held that there is an entitlement to reclaim VAT for costs (expenditures) connected with a planned acquisition that eventually did not come about…
General meeting’s consent with substantial asset transfers surrounded by dilemmas
One of the powers of the general meeting of a limited liability or joint-stock company is to give consent to transfer or pledge a business establishment or its part “that would result in a substantial change to the company’s existing structure,…
SAC on how to interpret double taxation treaties
If a double taxation treaty can be applied, the tax administrator may not automatically use domestic legal regulations to interpret a treaty’s individual concepts but must apply international law principles and the commentaries to the OECD’s Model…
Research and development allowance for clinical studies
In a recent judgement, the Supreme Administrative Court (SAC) held that a research and development allowance had been claimed unlawfully, as the project in question had no element of novelty. The SAC dealt with the third phase of clinical research…
October ECOFIN meeting: quick VAT fixes
In addition to the generalised reverse charge mechanism, other important VAT changes were agreed on at the October meeting of the Economic and Financial Affairs Council (ECOFIN). These involve quick fixes and the application of a reduced rate to e…
Uniform interpretation of crypto assets at hand?
An important voice has joined the pending discussions regarding the nature of crypto assets, i.e. virtual currencies, various tokens and initial coin offerings (ICO). In mid-October, a working group of the European Securities and Markets Authority …
Significant amendment to Labour Code returns
In August, the government began to discuss a document that will undoubtedly be familiar to some lawmakers and the professional public. A large amendment to the Labour Code, which the Chamber of Deputies in its previous structure did not have time to…