Tax & Legal Update
Will first ruling trigger class action avalanche?
Exactly one year after class actions were introduced into Czech law, the Municipal Court in Prague has ruled on the claims of customers to whom a company failed to deliver ordered goods. The customers presented their claims in joint proceedings and…
Supreme Administrative Court on beneficial owner of royalties
The tax administrator disputed foreign distribution companies as the beneficial owners of royalties and regarded them as mere intermediaries, therefore refusing the application of withholding tax in the amount under the double tax treaties based on…
CJEU: VAT perspective on supply of services to subsidiaries
In a recent judgment, the Court of Justice of the European Union (CJEU) addressed whether a supply of several partial services by a parent company to a subsidiary in the context of active management constitutes a single supply. The CJEU concluded…
GFD information on reduction of VAT deduction for bad debts
At the beginning of July, the General Financial Directorate (GFD) issued its information on the correction of a VAT deduction for overdue receivables on a debtor's part, explaining the practical application of the new provision of Section 74b(3) of…
What to prepare for with introduction of JMHZ: employee benefit reporting
The senate has passed the Single Monthly Employer Reporting (in Czech Jednotné měsíční hlášení zaměstnavatele or JMHZ) bill. The effective date of the bill remains scheduled for 1 January 2026, with some employer registration and monthly reporting…
Senate: Single Monthly Employer Reporting bill passed
The senate has passed the Bill on Single Monthly Employer Reporting (in Czech Jednotné měsíční hlášení zaměstnavatele or JMHZ). However, the accompanying bill containing unrelated legislative amendments was returned to the chamber of deputies with…
Modernisation Fund to distribute up to 6 billion for green transformation of heat…
Under the auspices of the State Environmental Fund, on 7 July 2025 the Modernisation Fund announced HEAT Call No. 1/2025 - Modernisation of Thermal Energy Supply Systems. The call aims to support the transition of heat plants to clean energy sources.
How to account for demonstration goods
A question many entities face is how to properly account for goods or own products they use for demonstrations. The new Interpretation of the National Accounting Council I-51 provides guidance on how to proceed when classifying demonstration goods…
Income taxes - summary of selected changes approved by chamber of deputies
At the end of June, the chamber of deputies approved in its third reading the bill on the Single Monthly Employer Reporting (JMHZ), including draft amendments to the accompanying laws. Although the JMHZ Act as a whole is due to come into effect on 1…
Taxation of employee stock option plans again and differently
The third change in a year and a half has been proposed to the taxation of employee stock and option plans within the debate of the laws accompanying the JMHZ Bill. This change relates to the taxation of the option plans for startups and entities…
Top-up taxes: extension of deadlines for tax returns and information returns
The chamber of deputies has approved an amendment to the Act on Top-Up Taxes extending the deadlines for filing the first-time Czech top-up tax returns and information returns to 18 months after the end of the taxable period. The amendment…
Advocate General comments on VAT treatment of tooling
The Advocate General of the Court of Justice of the European Union (CJEU) has confirmed the current approach to the VAT treatment of the sale of tooling (moulds), whereby it is a supply of goods without transport and therefore a taxable supply at…