Tax & Legal Update

Latest news - May 2017

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

Supreme Court: end of zero tolerance to alcohol at work

Although the Labour Code bans employees from entering the workplace under the influence of alcohol, the Supreme Court in its recent judgment stated that not every breach of this duty is automatically a justified reason for dismissal. According to…

Stricter conditions for tax deductibility of expenses?

Some rulings by the Supreme Administrative Court (SAC) have surprising outcomes and de facto narrow the space for recognising expenses as tax-deductible by requiring proof that that a service was received from a specific supplier.

EC presents additional tools to fight aggressive tax planning

The launch of an application to report illegal business practices and the establishment of a special unit of the European Commission – these measures are intended to help the EU tackle aggressive tax planning. Information gained through these tools…

Abolishment of investment limits for qualified investor funds

The government passed a long-awaited amendment to the decree on investing of investment funds and the techniques of their management. Starting from 1 June 2017, qualified investor funds no longer have to diversify their assets in compliance with…

Amendment to the Act on Foreign Nationals’ Residence in the Czech Republic…

The Act on Foreign Nationals’ Residence in the Czech Republic regulates the conditions under which foreigners may enter our territory and sets the rules for issuing residency permits and visas. Its amendment, which is now being discussed in…

Subsidies: also available for large enterprises?

In the second half of April, the Investment and Business Development Agency ceased to accept applications for support under the Potential and Innovation Programmes, falling under the Enterprise and Innovations for Competitiveness Operational…

Change in VAT relating to the realisation of security

Already signed by the president, an amendment to the VAT Act introduces a considerable change for banks and other VAT payers who secure the future payment of their receivables with movable and immovable property. According to the new amendment,…

Increasingly restrictive measures to secure tax collection

The tax authorities have recently adopted increasingly restrictive measures to collect as much tax as possible. One of these measures is the extended application of securing orders and their subsequent enforcement within a very short time. This,…

Transfer pricing: financial administration’s number one hit

For the last five years, transfer pricing issues have undoubtedly attracted a lot of attention from the financial administration.

When will Income Tax Act amendment become effective?

An amendment to the Income Tax Act, already signed by the president, is set to come into effect on the fifteenth day of its publication in the Collection of Laws. According to unofficial sources from the Ministry of Finance, the publication will be…

What will country-by-country reporting bring in practice?

The proposed amendment to the Act on International Cooperation requires multinational groups with an annual consolidated turnover exceeding EUR 750 million to prepare a country-by-country report. The amendment is currently on the agenda of the next…