Tax & Legal Update
Into the new year with an amended Civil Code
Two days before the third anniversary of the Civil Code’s effective date, its first overall amendment was published in the Collection of Laws as Act No. 460/2016 Coll. It has brought about some significant changes, the most crucial of which we…
Employees back on supervisory boards
The historically first amendment to the Corporations Act found its way through the legislative process and a day before year-end was promulgated in the Collection of Laws under No. 458/2016 Coll. With it, for some companies, the familiar duty of…
Stricter control over employees’ personal data protection
The legal framework regulating the handling of employees’ personal data is going through significant changes. One of them is the adoption of the EU General Data Protection Regulation (GDPR), substantially changing the rules for the treatment of…
International tax information exchange extended
Another amendment to the Act on International Cooperation in Tax Administration is to introduce a new duty to share information about financial results, performed activities, staff numbers and many other indicators.
GFD clarifies VAT regime upon resale of telecommunication services
Owing to a considerable degree of ambiguity primarily with respect to the resale of telecommunication services, the General Financial Directorate (GFD) decided to respond to frequent inquiries by publishing an appendix to the previously issued…
Amendments to tax laws at third reading
Amendments to tax laws (Print No. 873) will be subject to a third reading in the Chamber of Deputies, likely to occur after 10 January. The amendments should become effective on 1 April 2017. Discussions within the third reading will be quite…
Contracting several types of work may backfire on employers
The Labour Code gives employers several tools to make the relationships with their employees more flexible. The possibility of contracting more than one type of work in a single employment contract is one of them. In particular, this is practical…
Interest on retained excess deductions reconfirmed
It has been two years since the Supreme Administrative Court issued a breakthrough decision in the Kordárna case, confirming that the tax authority must pay interest on retained excess deductions to the taxpayer. Despite the court’s decision, tax…
Consideration paid after withdrawing from a contract for work
The Supreme Administrative Court (SAC) ruled (7 Afs 124/2016 – 35) on the VAT treatment of an amount that a customer paid to a contractor after withdrawing from a contract for work. The core of the dispute was whether the amount was a consideration…
OECD releases a multilateral instrument to modify double taxation treaties
Late in November, more than 100 states concluded negotiations on the wording of a new multilateral convention, which is an important part of the OECD’s action plan against base erosion and profit shifting (BEPS). This multilateral instrument will…
European Commission to overhaul corporate taxation
In late October, the European Commission released its proposal for major corporate tax reform. The package contains three areas: the common (consolidated) corporate tax base (CC(C)TB), mechanisms to resolve double taxation disputes, and measures to…