Tax & Legal Update
SAC on determining reference price
In assessing transfer prices, the Supreme Administrative Court (SAC) emphasised that it is necessary to distinguish between a hypothetical estimate supported by logical and rational reasoning and economic experience on the one hand, and a…
Tax administration principles: non-publicity, confidentiality, and personal data…
Certain procedural principles, such as the principles of legality, speed, and economy, apply in various areas of public law. Other principles are specific for the administration of taxes, such as the principles of confidentiality, non-publicity, and…
Class action act heading to senate
The Act on Collective Proceedings has passed its third reading in the chamber of deputies and is awaiting approval by the senate. It transposes an EU directive and aims to ensure better protection of collective consumer interests in disputes with…
Exposing illegal work and disguised agencies labour inspectorate’s main focus
The State Labour Inspection Office carries out almost 20,000 inspections each year. In 2023, there were 19,977, i.e., 1.5 thousand more than in the previous year. The largest number of inspections focused on work safety, but inspections of illegal…
Subsidies for charging stations in Czech Republic and EU
The European Commission has announced another call for proposals under the CEF2 grant programme, with total funds for allocation of up to EUR 1 billion. The programme supports the construction of public chargers for electric vehicles, hydrogen…
Register of representations – revolution in registration of powers of attorney
The government's amendment to the Basic Registers Act brings a significant change in the registration of legal representation. It will now be possible to choose between the traditional paper form, and the modern electronic form of power of attorney.…
News on double taxation treaty with Russia
On 8 August 2023, Russia discontinued the application of key articles of its double taxation treaty with the Czech Republic and other 37 countries. In the Czech Republic, this suspension has been legally effective from 29 September 2023. The…
Flexibility amendment to Labour Code headed into comment procedure
A flexibility amendment (flexinovela in Czech) to the Labour Code recently presented by the Minister of Labour and Social Affairs has already been sent to official commenting points. Its main objective is to increase the flexibility of labour…
Interest on retained VAT deduction: SAC verdict closes another chapter
In its recent judgment, the Supreme Administrative Court (SAC) has ruled that the statutory rate of interest on retained VAT deductions for the 2017 to 2020 period was in line with EU law. This dashed the hopes of many taxpayers who following a…
SDEU: prepaid cards single-purpose vouchers for VAT purposes?
In its judgment, the Court of Justice of the European Union (CJEU) held that prepaid cards constitute single-purpose vouchers if the place of supply and the VAT due are known at the time of issue. The CJEU further concluded that transfers of multi…
Innovation Fund offering subsidies for innovative low-carbon technologies
The Innovation Fund is one of the largest subsidy programmes aimed at supporting low-carbon and innovative technologies. The programme is announced and managed by the European Climate, Infrastructure and Environment Executive Agency (CINEA) and…