Tax & Legal Update
Registration of beneficial owners: who exercises control?
Effective 1 October of this year, the Act on the Registration of Beneficial Owners has undergone fundamental changes. The legislators complied with the requirements of the European Commission and eliminated the deficiencies concerning the definition…
VAT treatment of sub-participation agreements
The Court of Justice of the European Union (CJEU) has dealt with the question whether sub-participation agreements, whereby a creditor under a credit agreement (a lender) transfers the credit risk to a third party, are covered by the exemption from…
Self-employed can associate and bargain collectively
The European Commission has issued guidelines on the application of EU competition law to collective agreements regarding the working conditions of self-employed persons who are in the same position as employees. Under these guidelines, it will be…
TREND programme to support development of 5G technologies
In October, the Technology Agency of the Czech Republic (TA CR) announced the 8th call to participate in research and experimental development under the TREND programme with a focus on the development of 5G and higher technologies.
EU unifies chargers for phones, tablets, and laptops
From 2024, all phones and tablets sold in the EU will have to be equipped with a USB Type-C charging port. Two years later, the obligation will extend to laptops.
Amendment to VAT Act to increase limit for compulsory VAT registration
The limit for compulsory VAT registration should increase from CZK 1 million to CZK 2 million from 1 January 2023. This should particularly help small businesses adversely affected by the COVID-19 pandemic. The draft amendment contains other changes…
When does Labour Code not apply to truck drivers?
In the summer, an amendment to the Road Transport Act entered into effect, as a result of which certain provisions of the Labour Code shall not apply to drivers in international road transport from 1 August 2022. The amendment thus restricts certain…
TREND programme for newcomers
The Technology Agency of the Czech Republic (TA CR) has announced the preliminary parameters of the next call for proposals under the TREND programme to support industrial research and experimental development. The 9th call is intended to kick-start…
Penalty for filing VAT ledger statement for incorrect taxable period
In case 5 Afs 281/2021-34, the Supreme Administrative Court (SAC) dealt with the question of whether a CZK 50,000 penalty had been legitimately imposed on an entity who had incorrectly filed a VAT ledger statement for a previous period. The SAC…
Definition of concern group for actions to set aside under insolvency act
The Business Corporations Act defines a group (a ‘concern’) as follows: one or more persons subject to single management by another person or persons form a concern group with that dominant person. However, the concept of a concern group is also…
Compensation for connecting flight delays mandatory
The Court of Justice of the EU strengthened air passenger rights while highlighting the role of travel agents in ticket sales (C-436/21). Passengers will thus be entitled to compensation even for the delay of a connecting flight operated by a…
Extraordinary measures to mitigate high energy prices
The EU Council has approved the Regulation on an Emergency Intervention to Address High Energy Prices. In addition to a binding target to reduce electricity consumption during peak times by at least 5%, it introduces two new resources for national…