Tax & Legal Update
Amendment to Labour Code: major changes to remote work rules
A draft amendment to the Labour Code is heading to the chamber of deputies. The bill has undergone significant changes since last autumn when it was first published. From an employers’ perspective, the changes to the rules for working from home are…
New savings product for retirement: conditions for claiming tax relief
With effect from 2024, the Ministry of Finance proposes to extend tax-efficient retirement savings with a new form - a long-term investment product. It is an alternative to the current 3rd pillar of the pension system (comprising supplementary…
Windfall tax: practical information on application
The financial administration has published answers to questions about the windfall tax, which is to be applied from 2023 to 2025. Below we summarise the most important conclusions.
Capping energy prices for large enterprises in April: another amendment and first…
With effect from 1 April 2023, the fourth amendment to the government decree on the determination of electricity and gas prices in an extraordinary market situation and on the determination of the related maximum permissible customer's financial…
Minimum tax: transitional safe harbour rules
A global minimum tax will apply from taxable periods beginning on or after 1 January 2024. It will be applied to groups with consolidated revenues of more than EUR 750 million. This is the same revenue threshold that obliges corporate groups to…
What are other defence options in tax proceedings?
In previous articles, we described the standard way to defend against the tax administrator's decisions the taxpayer did not agree with. Czech law also offers other ways to remedy a tax administrator’s incorrect decisions. In the Tax Procedure Code,…
Advertising services under scrutiny: recent case law
Reviewing the tax deductibility of advertising costs is still very popular with tax administrators during inspections. Below, we inform you about recent case law that could indicate what documents taxpayers should have on hand during an inspection…
Changing obligations of accommodation providers
The General Financial Directorate has issued updated information on the tax assessment of the obligations of accommodation service providers. The information responds to legislative changes in effect from January 2023 concerning value added tax,…
Teleworking between Czech Republic and Germany or Austria: changes in insurance…
The Czech Republic has concluded framework agreements with Germany and Austria concerning persons working remotely in the other country, i.e., teleworking. Both agreements are effective from 1 March 2023 and respond to current trends in working from…
Ukrainians in the Czech Republic losing temporary protection due to Canadian visas
Temporary protection is provided to foreigners who left Ukraine after 24 February 2022 in connection with Russian aggression and meet certain specified conditions. This type of residence permit allows free access to the labour market and offers…
Supply of energies at capped prices: clarification of VAT treatment
Compensation for the supply of electricity and gas at capped prices constitutes a consideration received from a third party, on which the electricity or gas suppliers must pay VAT. The Ministry of Finance expressed this opinion following the…