Tax & Legal Update
Preventive restructuring – a new solution for companies in financial difficulties
In August, the senate approved a bill on preventive restructuring. It aims to help entrepreneurs avoid bankruptcy and enable them to deal with serious financial difficulties promptly and without public involvement.
Possibility to keep accounts in foreign currency now part of consolidation package
The governing coalition has agreed on amendments to the bill on the consolidation of public budgets (the consolidation package planned to enter into effect from 1 January 2024). The bill has already passed the first reading in the chamber of…
Summer subsidy news
In July, the Ministry of Industry and Trade (MIT) informed about the early termination of the receipt of applications to participate in Call I of the Energy Savings programme. The expected Infrastructure Services call designed to support the…
Consolidation package may negatively affect VAT on lease and resale of cars above…
The government's consolidation package limits the right to deduct VAT for passenger vehicles in category M1 with a purchase price of over CZK 2 million. This will have a negative impact on the lease of passenger cars with a purchase price above the…
New blockchain framework for capital markets
Blockchain, or distributed decentralised database technology, is currently finding increased use in many areas of law and business. Capital markets are no exception, and one of the most interesting developments is the introduction of a pilot regime…
Minimum tax: current OECD and Czech developments
In July, the OECD published details on the content of the top-up tax information return, and additions to the administrative guidance. The Czech Ministry of Finance then published the outcome of the comments filed during the comment procedure and…
Changes to rules for issuing Blue Cards
Effective 1 July 2023, significant changes have been made to the Act on the Residence of Foreign Nationals. The amendment primarily implements the EU Blue Card Directive and reflects some operational requirements. Any changes simplifying the…
Changes in competition law: anti-trust office may use police wiretaps
On 29 July 2023, an amendment to the Act on the Protection of Competition entered into effect, significantly strengthening the powers of the Czech anti-trust authority, the Office for the Protection of Competition. Among other things, it provides…
SAC: advertising services and the right to deduct VAT
In judgment 8 Afs 111/2022–36, the Supreme Administrative Court (SAC) assessed how far a taxpayer had discharged their burden of proof in a case involving received advertising services that were to be rendered within motorcycle races, among other…
Coordination Committee clarifies changes to VAT Act for real estate
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors of the Czech Republic has dealt with changes to the VAT Act in connection with new construction regulations. The changes will be effective from 1 January…
Strengthening cybersecurity: new law to tighten rules for Czech companies
The bill submitted by the National Cyber and Information Security Agency (NCISA) sets new obligations in cyber security arising from the NIS 2 Directive. A conservative estimate is that the number of entities affected by the new obligations will…