Tax & Legal Update
Class actions are newly available in the Czech Republic
The closely watched innovative Class Actions Act entered into force on 1 July 2024, making it possible for groups of people to combine their claims based on the same or similar grounds into a single action and save on court costs.
Due Diligence Directive: what companies need to know
The European Union is introducing a new Corporate Sustainability Due Diligence Directive (CSDDD), which introduces new obligations for businesses. Consequently, these should be prepared for greater scrutiny of their activities and their supply…
More flexible arrangements for occasional road passenger transport
At the end of May, an EU regulation introducing changes to the rules regarding (minimum) breaks and rest periods in occasional road passenger transport entered into force. The regulation primarily aims to consider the sector’s specific working…
R&D allowances under TREND programme
The Technology Agency of the Czech Republic has announced the 12th call to participate in the TREND programme focusing on industrial research and experimental development.
Supreme Administrative Court defends taxpayer’s acquisition structure
The Supreme Administrative Court rejected the tax administration's view that the purchase of a share in a corporation financed by a loan and the subsequent merger to transfer the loan to the newly acquired operating entity constituted an abuse of…
New way of reporting employees posted to the Czech Republic
The Ministry of Labour and Social Affairs has introduced new rules for the notification of the posting of workers in the Czech Republic within the framework of the transnational provision of services. The rules are effective from 1 July 2024 and…
Creditor protection under amendment to Company Conversions Act
On 19 July 2024, a major amendment to the Company Conversions Act (No. 162/2024 Coll.) will enter into effect. In this article, we summarise the changes concerning the protection of creditors and persons participating in the conversion and the…
Obligations under deposit-refund system for PET bottles and cans
Not all PET bottles thrown away in yellow bins are recycled. The mandatory charging of deposits on them should help in this respect. The Ministry of the Environment has published a draft amendment to the Packaging Act. Below we summarise the impact…
Generous subsidies for industries under EU ETS scheme
The State Environmental Fund of the Czech Republic has announced ENERG ETS No. 1/2024, a new call under the Modernisation Fund focusing on the modernisation of energy sources and production or processing facilities in industries under the EU ETS…
Changes to excise duties from 2025
The government has approved a draft amendment to the Excise Duty Act, which introduces several key changes aimed to reduce the administrative burden for taxpayers, increase legal certainty on the market for selected products, and increase the…
CJEU on fixed establishment for VAT purposes
In case C 533/22 SC Adient Ltd & Co. KG, the CJEU confirmed its earlier conclusions regarding the origination of a fixed establishment for VAT purposes. In the present case, as in cases C 232/22 Cabot Plastics and C 333/20 Berlin Chemie, the court…