Tax & Legal Update
OECD makes blanket change to double tax treaties
In November 2016, OECD released a multilateral convention that will affect the application of double tax treaties. The instrument implements the outcomes of the BEPS Action Plan into more than 2 000 tax treaties. A signing ceremony has been planned…
Amendment to the Building Act simplifies construction permits
An amendment to the Building Act has passed its second reading in the Chamber of Deputies. The main change that it brings is the new concept of a joint zoning and building procedure, including the possibility to issue a joint ruling for such a…
Banks fighting cyber threats jointly
The Ministry of Finance is preparing an amendment to the Act on Banks and the Act on Savings and Credit Unions. Its primary purpose is to modify these laws according to changes that have been made to related legislation. Additionally, a new…
EU taking a closer look at cross-border posting of workers
Within cross-border provisions of services, many entrepreneurs post their employees to temporarily work in other EU countries. As the services’ users in economically stronger member states might easily misuse cheaper labour from abroad, since 1996…
Clarification of VAT regime on re-sale of telecommunication services
The General Financial Directorate (GFD) decided to respond to frequent inquiries regarding the purchase and sale of electronic communication services and issued a clarifying appendix to its already-published information. The application of a…
Amendment significantly expands reporting duties towards tax authority
In mid-February, the Ministry of Finance submitted an amendment to the Tax Procedure Rules for an accelerated comment procedure. This amendment should ensure access to other information about taxable entities and their bank accounts to tax and other…
GFD provides clarification on reporting of sales received from carriers
Have you properly set contractual terms and conditions with your carriers? Do you know when and who is supposed to report sales with payment collection provided by carriers? Please note that for ERS purposes, not all carriers are the same! The…
How to deliver data messages with powers of attorney
Delivering messages to data boxes have been causing interpretation uncertainties since 2009 when data boxes were introduced in our legislation, in particular where the formal elements of documents delivered via data boxes are concerned. Both civil…
Survey: Czech tax environment not supportive of business
Almost two thirds of finance managers do not consider the Czech tax environment favourable for business activities and more than half of them view the changes made in the last two or three years as negative. In their opinion, the most negative is…
Duty to call for additional tax returns not absolute
The Supreme Administrative Court (the SAC) recently had to decide under what circumstances the tax administrator is obligated to call upon taxpayers to file an additional tax return before commencing a tax inspection.
Good news for creditors and collection agencies
In December, the Court of Justice of the EU gave a special Christmas present to all creditors and collection agencies. In its decision, the court explained when legislation regulating the provision of consumer credits should (not) apply to…