Tax & Legal Update
SAC on simultaneous technical improvement and repair of real property
In the tax administrator’s opinion, a company carrying out extensive structural modifications to a real property should treat all the work collectively as a technical improvement, and not part of it as repairs. The Supreme Administrative Court …
RSUs as employee remuneration option
Abroad, RSUs (restricted stock units) are a relatively common and effective tool for rewarding employees. They are becoming increasingly popular in the Czech Republic where, in a highly competitive labour market, retaining the best employees is a…
Jubilee for health insurance debtors
Another debt jubilee is being prepared, this time focusing on health insurance. A group of deputies has submitted to the chamber of deputies a bill on the extraordinary remission of penalties on public health insurance premiums, under which…
Czech Republic prolongs temporary protection and extends residence permits for …
The Ministry of the Interior has launched a system for the extension of temporary protection, allowing Ukrainian refugees to prolong their legal stay until 31 March 2025. At the beginning of the year, the range of residence permits that can be…
GFD Information on Application of VAT from January 2024
Last week, the General Financial Directorate published its Information on the Application of VAT on Selected Passenger Cars from 1 January 2024 and Information on Changes to VAT Rates from 1 January 2024. These documents should clarify several…
Approval process begins for new Accounting Act
The Ministry of Finance has published a draft of the new Accounting Act, for which the comment procedure has been completed. According to the proposal, the law should enter into effect on 1 January 2025. The bill will now be discussed by the…
Proposed amendments of the IASB – classification as financial liabilities or equity?
The IASB has published proposals to amend certain standards to address long-standing practice issues in the classification of financial instruments and to enhance information provided to investors.
Principles of tax administration: speed and economy
The principles of tax administration are not just abstract boundaries, but a basis for a whole range of very concrete benefits for taxpayers that are good to keep in mind when the tax authorities come knocking.
Income from stock option plans: discrepancy between time of taxation and time of …
The act amending certain laws in connection with the development of the financial market and the promotion of old-age security entered into effect on 1 January 2024. One of the amended laws was the Income Tax Act, which now regulates the taxable…
Real estate tax turning from small to big
The consolidation package introduces a significant amendment to the Real Estate Tax Act. After more than a decade, tax rates have increased by approximately 80%. Many partial changes intended to intensify the collection of this tax have also been…
How to tax employee benefits from 1 January 2024?
The General Financial Directorate has issued its Methodological Guidance on the Taxation of Benefits and Other Types of Performance Provided by Employers to Employees from 1 January 2024 in connection with the amendment to the Income Tax Act…