Tax & Legal Update
VAT system fit for digital age now within reach
The forthcoming reform of the VAT system is intended to improve the efficiency, fairness, and collection of tax and reduce VAT fraud. The European Commission is currently preparing concrete proposals on digital reporting, the application of VAT to…
Draft DEBRA directive allows deducting notional interest on equity financing
The European Commission has published a proposal for a directive that should balance the tax disadvantages of equity financing compared to debt financing (debt-equity bias) by allowing taxpayers to deduct from the tax base notional interest on newly…
EU: new rules for customer-supplier contracts
The European Commission has issued a new regulation stipulating exemptions from the ban on vertical agreements. What to watch out for when concluding distribution and other customer-supplier contracts from 1 June 2022?
Lump-sum compensation for employers upon garnishment of wages
On 1 January 2022, an amendment to the Enforcement Procedure Code entered into force, addressing multiple enforcement proceedings against a single debtor and amending the rights of parties to the proceedings. Apart from substantially improving the…
Support for research and development: DELTA 2 programme opens
On 18 May 2022, the Technology Agency of the Czech Republic (TA CR) announced the fourth call within the DELTA 2 Programme for Support of Applied Research, Experimental Development and Innovation. The programme supports the transfer of international…
New call to support water saving in industry
On 5 May 2022, the Ministry of Industry and Trade announced a long-awaited call for water saving in industry. This is the first call of its kind under the National Recovery Plan.
Increase in VAT registration limit: main tax implications for entrepreneurs
The government has prepared tax changes aimed at simplifying tax obligations for entrepreneurs next year while also proposing to extend the extraordinary tax depreciation regime to 2022 and 2023.
VAT perspective on early termination of energy supplies
At a meeting of the Coordination Committee of the Chamber of Tax Advisors and the General Financial Directorate, the financial administration confirmed that compensation for the early termination of energy supplies or the failure to deliver an…
SAC paves way for assessment of additional tax on transactions with unrelated parties
The Supreme Administrative Court has opened transfer pricing’s Pandora's box by allowing tax administrators to assess additional tax based on overall profitability not just for related-party transactions, but also for transactions with unrelated…
Transfer pricing on audit committee‘s agenda?
Transfer prices are part of the agenda of almost every medium-sized and large company. If the company is subject to audit, its audit committee should also be involved. Because of the implications that incorrectly-set transfer prices can have for the…
Chamber of deputies partially abolishes road tax and supports electromobility
In response to high fuel prices, the chamber of deputies approved a government bill partly abolishing the road tax and granting tax advantages for the use of low-emission vehicles.