Tax & Legal Update
Subsidies for digitisation of SMEs under OP TAC
The Ministry of Industry and Trade has announced a call in the Digital Enterprise – Digital Technologies programme, aiming to increase the competitiveness of small and medium-sized enterprises (SMEs) by supporting investments in advanced…
SAC: tax treatment of non-deductible expenses does not change by including them in…
The Supreme Administrative Court (SAC) has recently addressed again the tax deductibility of expenses, in particular dealing with a section of the Income Tax Act allowing non-deductible expenses (e.g. entertainment expenses) to be treated as…
Additional research and development subsidies under TREND
The Technology Agency of the Czech Republic (TA CR) is about to launch its thirteenth call under the TREND programme to support projects in industrial research and experimental development.
GFD’s new instruction: penalty waivers of up to 100 percent
The General Financial Directorate's (GFD) Instruction D-72 on the waiver of tax accessories (tax-related penalties and interest) became effective on 15 September, responding to the amendment to the Tax Procedure Code in effect from 1 July 2025 that…
VAT implications of transfer pricing adjustments
The CJEU has confirmed that amounts invoiced for services between related companies calculated according to the OECD methodology are subject to VAT. If a parent company provides services to a subsidiary that are linked to its operating profit margin…
GFD clarifies employee benefit treatment
An accompanying law to the JMHZ that amends the Income Tax Act is currently awaiting the president's signature. The amendment clarifies the rules for providing employee benefits with the aim of preventing salary/bonus swaps. Following this new…
Single monthly employer reporting: questions for GFD and ministry representatives
Next year, employers will get to see fundamental changes in taxes and mandatory contributions. The dozens of prescribed forms and reports they now must use will be replaced by a single monthly employer report (JMHZ). With Director General of the…
JMHZ accompanying bill passed by chamber of deputies
On 10 September 2025, the chamber of deputies passed an accompanying bill to the Act on Single Monthly Employer Reporting (in Czech Jednotné měsíční hlášení zaměstnavatelů or JMHZ) reflecting the senate’s amending proposals.
EU-US Framework Trade Agreement will help make trade cheaper
In August, the European Union and the United States issued a joint statement on a new framework agreement. This is intended to make trade between the two parties easier and cheaper.
Whatever happened to Code of Administrative Justice amendment?
The amendment to the Code of Administrative Justice was published in the Collection of Laws on September 2.The new rules of will affect the process of defending against decisions or interventions by administrative authorities in court. In our…
Banking amendment: wider powers for CNB and clarification of rules for branches of…
The amendment to the Banking Act and other financial market laws is already valid, and most of its provisions will enter into effect from 11 January 2026. The amendment transposes the Capital Requirements Directive VI (CRD VI), regulates certain…
CBAM: new obligations for importers
The Carbon Border Adjustment Mechanism (CBAM) is the European Union’s key tool to combat climate change. It aims to eliminate the risk of ‘carbon leakage’ where production is moved to countries with less stringent emission standards. New obligations…