Tax & Legal Update
Electronic signature - easy, fast, legally binding, and worry-free
A simple electronic signature is often perceived as less reliable than a handwritten signature on paper because it is not easy to prove who created it. However, recent court decisions have confirmed that it is fully valid for most common legal…
Employment legislation - what changes apply since 2025?
On 1 January 2025, the long-awaited amendment to the Employment Act entered into effect, bringing changes in labour inspection activities and the employment of persons with disabilities. The aim is to encourage employers to employ more persons with…
SAC on proving tax deductibility of repair costs
The Supreme Administrative Court (SAC) ruled on the issue of proving the tax deductibility of costs for the overhaul of an evaporator. In its judgment No. 2 Afs 70/2024, the SAC confirmed that the burden of proof lies with the taxpayer who must…
Stricter rules on employment of foreigners on horizon
In connection with the preparation of the new Foreigners’ Residence Act, the Ministry of Labour and Social Affairs proposes to introduce into the Employment Act a verified employer concept.
AMLA: new player in fight against money laundering and terrorist financing
The European Union is stepping up its fight against money laundering and terrorist financing. Last year, the new Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) was created. Based in Frankfurt am Main, it will…
GFD Information on changes to VAT payer status and registration procedure
In connection with the amendment to the VAT Act effective from 1 January 2025, the GFD issued Information on the VAT payer status and registration procedure. The information provides more precise guidance on when a taxable person becomes a VAT payer…
Indirect shareholding expenses: burden of proof always on taxpayer
The Supreme Administrative Court (SAC) dismissed the cassation complaint of one of the best-known holding companies in the Czech Republic that had disagreed with the adjusted amount of indirect expenses for holding shares in its subsidiaries to be…
Modernisation Fund prepares new subsidies for photovoltaics
The State Environmental Fund of the Czech Republic has published a time schedule for calls that are to be announced under the Modernisation Fund in 2025. This year will see, among other things, several new calls providing support for photovoltaic…
Applications programme: subsidies for digital solution development
In cooperation with the Agency for Enterprise and Innovation, the Ministry of Industry and Trade has announced Call II under the Applications programme to support digitisation.
Government approves mandatory employers’ contribution to employees' savings
The pension system reform will bring about a major change for employees in certain high-risk jobs. As they will no longer be able to retire early without their pension being cut, the new law includes the obligation for employers to contribute to…
KPMG survey: how are tax departments in CR keeping up with digitisation?
A recent KPMG survey shows that tax departments in companies in the Czech Republic are generally satisfied with the management of their tax agenda, but there are still some gaps in the implementation of new technologies; e.g., only 8% of respondents…
New subsidy programme for climate neutrality to distribute up to 24 billion
On 24 January 2025, the Ministry of Industry and Trade launched a new subsidy programme to attract strategic investments and support the growth of the Czech economy. The programme is designed for large investments in the production of batteries,…