Tax & Legal Update
What to watch out for when preparing documents to claim R&D allowance
Even though R&D-related legislation may appear unchanged, in 2023, tax administrators may no longer accept approaches applied in prior years. Last year’s case law showed that project objectives, documentation, and evaluation should be as specific as…
Support research and development with subsidies under TREND programme
The Technology Agency of the Czech Republic (TA CR) has announced the preliminary parameters of the call to participate in the TREND programme to support industrial research and experimental development. This is the 10th call for proposals, this…
Draft amendment to Investment Incentives Act to be discussed by government
In March, the government will discuss the long-prepared and debated amendment to the Investment Incentives Act including the relevant decree. We consider the main reasons for the upcoming change to be the poorly set up process of approving…
Tips on how to prepare for aid inspections
Have you applied for subsidies under the OP EIC or are you now planning to apply for support under OP TAC? You may then be subject to an inspection of compliance with the subsidy conditions by one or more public institutions. The Ministry of…
Capped energy prices: amendment to government decree with new obligations
An amendment to Government Decree No. 298/2022 Coll., on the determination of electricity and gas prices in an extraordinary market situation, came into effect on 4 February 2023. The amended decree sets out rules on the amount of public aid that…
Court proceedings after decision on appeal
What happens in a tax dispute once the appellate proceedings are closed, and what to expect if you file a lawsuit against the Appellate Financial Directorate’s decision? In this article, we shed some light on the judicial proceedings that may follow.
Setting up company faster and easier from January
Founders of limited liability companies may now obtain a trade license even after the company has been incorporated/registered in the Commercial Register. Things should also be made easier by an official memorandum of association template, which…
Regional Court on deductibility of interest on acquisition loan and abuse of law
In judgment 55 Af 4/2020–137, the Regional Court in Prague dealt with a company that claimed interest on a bank loan for the purchase of a share in a Czech company with which it was subsequently to merge by acquisition. The loan was provided by an…
New subsidy programmes in 2023
The new year offers new opportunities for subsidy support: several calls and public tenders target projects focused on research and development, energy savings, construction of photovoltaic power plants, and applied research in transport.
Proving services provided by parent company and principle of legitimate expectation
In recent judgment No. 30 Af 57/2021-76, the Regional Court in Brno reminded us how important robust documentation of services is in defending the tax deductibility of expenses. The core of the dispute involved a taxpayer claiming in their income…
Introduction of carbon border tax imminent
The EU has reached an agreement on the introduction of a carbon border adjustment mechanism. The purpose is to level the prices of products subject to carbon fees (allowances) within the EU with the prices of comparable goods imported from outside…