Tax & Legal Update
Changes in employee income taxation in 2024
Changes in the taxation of employee income for 2024 mainly stem from the amendment to the Income Tax Act approved as part of the consolidation package. A summary of the most important ones is presented below.
Abolition of additional agreed overtime and other labour-law changes in the…
The beginning of the year brought new conditions for health professionals. The amendment to the Labour Code mainly responds to widespread protests by healthcare workers against the recent extension of overtime work in their sector, and to other…
Changes in VAT from 2024
On 1 January 2024, the consolidation package came into effect. It also includes an amendment to the VAT Act, introducing two major changes to VAT: the consolidation of two reduced rates of 15% and 10% into one 12% rate (reclassification of some…
Update on Czech and global top-up taxes
At the end of 2023, the law on top-up taxes for large multinational and national groups implementing the EU directive on global minimum tax entered into force. From taxable periods beginning after 31 December 2023, companies and permanent…
CJEU on application of tax rate for selected beverages
The VAT Directive does not prevent member states from applying a reduced rate to selected goods and services. One of the possible criteria for classifying goods into reduced rates is the customs nomenclature. Member states may use other…
SAC on interpretation of double tax treaties
When interpreting the text of an international treaty, it is necessary to follow primarily the general rules of interpretation, i.e., use linguistic, systematic, and teleological methods. The commentaries on the OECD Model Tax Convention can only be…
Consolidation package and the new Accounting Act
At the end of November 2023, President signed the consolidation package, which amends a total of 65 laws, including the Accounting Act. The partial amendment to the Accounting Act includes the possibility of using a functional currency in Czech…
Measuring fair value in times of change
In recent years, companies have needed to respond and adapt to major economic changes, such as mounting inflation and interest rates, geopolitical events, the rise of artificial intelligence and climate-related matters.
Digitisation of Schengen visas receives green light
On 13 November 2023, the Council of the EU adopted rules for the digitisation of processes related to the issuing of short-stay or Schengen visas. What changes will this bring?
Consumer credit: new obligations for providers and new rights for consumers
In October, the EU directive on credit agreements for consumers entered into force, replacing the previous directive from 2008. The need for new consumer credit legislation arose due to rapid technological developments and the ongoing digitisation…
Development of administrative practice in VAT treatment of fuel cards
The application of VAT on fuel cards has been a highly scrutinised topic. Fuel cards are often used by vehicle operators for refuelling. In September this year, the VAT Committee issued new guidance after re-visiting the EU Court of Justice's ruling…