Tax & Legal Update
CJEU: Romanian windfall tax compatible with EU law
The CJEU has confirmed that the Romanian windfall tax imposed on renewable energy producers between November 2021 and March 2022 is not contrary to the rules governing the functioning of the European energy market and climate targets as defined by…
Financial administration stepping up illegal work checks
The Czech financial administration is significantly intensifying its inspection activities focused on illegal forms of employment, in particular disguised labour mediation. We therefore recommend that all employers pay increased attention to the…
Government regulation on JMHZ: what data to provide and in what form?
The government regulation implementing the Act on Single Monthly Employer Reporting (in Czech "Jednotné měsíční hlášení zaměstnavatele" or JHMZ) was published in the Collection of Laws (No. 417/2025 Coll.), representing a fundamental step towards…
SAC: application of double tax treaty to sale of domestic real estate business share
The Supreme Administrative Court (SAC) ruled that a Cypriot company’s income from the sale of a business share in a Czech company whose value consisted in more than 90 percent of real estate is subject to taxation in the Czech Republic.
Slovakia’s third consolidation package: higher taxes, new rates and other changes…
The Slovak Parliament has approved the third public finance consolidation package, bringing significant changes to the tax system in Slovakia with effect from 1 January 2026. Here is a summary of the most important changes.
What to prepare for with introduction of JMHZ (part 3): sports and healthcare …
For the third month running, we are continuing our series of articles dedicated to selected employee benefits in connection with the planned introduction of the single monthly employer reporting (JMHZ) scheme. This time, we will focus on sports and…
Courts adopting stricter stance on ‘Svarc system’ – what to watch out for?
Situations where cooperation with entrepreneurs may be classified by the authorities as illegal work are a frequent cause for concern among employers. Structuring these relationships in a way that avoids falling under the definition of the ‘Svarc…
Packaging regulation in jeopardy?
Companies across numerous EU member states are voicing strong concerns over the new packaging regulation (Regulation (EU) 2025/40), which they will have to comply with as early as next year. What are the most contentious points? Can changes still be…
Compensation for victims of communist regime’s protective surveillance
From 1 September 2025, people who for political reasons were subjected to the communist regime’s protective surveillance can apply for a one-off compensation payment of CZK 100,000. Applications must be submitted by 31 December 2026.
Faster and easier corporate changes in EU
With a recently adopted EU directive, the EU undertakes a major step toward digitising company law in the EU and simplifying doing business. The directive’s goal is to expand and modernise the use of digital tools to streamline procedures for…
SAC rules on tax non-deductibility of interest on intra-group financing
In its August 2025 judgement, the Supreme Administrative Court (SAC) revisited the non-deductibility of interest expenses on a loan that arose in the context of a corporate group's internal restructuring. The court assessed the taxation of interest…