Tax & Legal Update
Liability for employee wage claims in subcontracting chains in construction
Although a major amendment to the Labour Code has only entered into effect recently, the Ministry of Labour and Social Affairs is already preparing further changes and has submitted to the government a draft amendment introducing the liability of…
Until when can additional tax return for lower tax be filed?
The extended chamber of the Supreme Administrative Court (SAC) has ended a long-standing dispute between the financial administration and taxpayers regarding the deadline for filing an additional tax return for lower tax. In doing so, the SAC sided…
SAC’s view on parent company orders
Any influencing of an uncontrolled transaction by a related party, usually a parent company, is regarded by the tax authorities as a parent company’s orders. This may be, e.g., a parent company ordering a subsidiary to sell goods to that…
Impact of sanctions against Russia on importers of iron and steel products
From 30 September 2023, importers of iron and steel products into the EU are newly obliged to prove that they did not use iron or steel of Russian origin in their production. The measure is part of a package of sanctions against Russia that had been…
CBAM reporting in force since 1 October
From 1 October 2023, companies importing selected products from non-EU countries whose production is CO2-intensive (e.g., cement, aluminium, fertilisers, electricity, hydrogen, iron and steel and downstream products such as screws and bolts) are…
Act on investment companies and investment funds: transfer of assets and liabilities…
At the beginning of August, the Ministry of Finance submitted to the government a draft amendment to the Act on Investment Companies and Investment Funds, explicitly stipulating the possibility of mergers (acquisitions) between capital companies …
ViDA and its impact on platform economy
The draft VAT in the Digital Age (ViDA) Directive promises to modernise the VAT system across the European Union. The aim is to increase EU tax revenues, digitalise reporting, defend against tax fraud more effectively, and move towards a definitive…
Companies can now submit applications to participate in Call 1 of THETA 2
On 13 September 2023, the Technology Agency of the Czech Republic announced Call 1 of THETA 2, a programme supporting applied research and innovation in the transformation and modernisation of the energy sector.
Subsidies for water saving in industry
On 14 September 2023, the Ministry of Industry and Trade announced Call I – Sustainable Water Management under the Operational Programme Technology and Applications for Competitiveness. Support can be granted to projects that reduce and optimise…
Temporary protection for Ukrainian citizens extended for one year
As the continued Russian invasion of Ukraine does not make it safe for Ukrainian citizens to return to their homeland, the government has proposed to extend their temporary protection for another year, until 31 March 2025. Currently, the blanket…
Setting up a group’s whistleblowing system correctly
For some entities, the Act on the Protection of Whistleblowers entered into effect on 1 August this year. However, its wording still raises questions so far not answered, not even by the methodological guidance of the Ministry of Justice. One of the…
Proving management services and legitimate expectations
In August, the Supreme Administrative Court closed a case concerning the tax deductibility of management services. It explained in detail the taxpayer's obligations when proving services and what the taxpayer can reasonably expect with respect to…