Tax & Legal Update
Changes in employee taxation in 2026
The new year brings changes in employee taxation and social security and health insurance contributions. Below, we bring you an overview of the most important changes that employers can expect.
CJEU rules on VAT treatment of Czech ‘society‘ without legal personality
The Tenth Chamber of the Court of Justice of the European Union (CJEU) ruled on case C-796/23 Česká síť s.r.o. It concerns the determination of the taxable person who performed a taxable supply and is obliged to pay value added tax in the context of…
VAT news for 2026
Although most of the major changes introduced by the extensive amendment to the VAT Act and passed in 2024 came into effect in 2025, some amendments became effective as late as 1 January 2026. Below, we summarise what has changed in the VAT Act from…
Innovation Fund offering subsidies for decarbonisation and clean technologies
The European Climate, Infrastructure and Environment Executive Agency (CINEA) has announced new calls for proposals under the Innovation Fund. The calls focus on supporting highly innovative projects that are essential for achieving the EU's climate…
R&D allowance from 2026 – what will change and what will remain the same?
Several fundamental changes in research and development (R&D) allowances are being introduced by an amendment in effect from 1 January 2026. These mainly concern the method of calculating the allowance and the deadline for claiming it. However, the…
Permanent establishment occurring through home office arrangements: OECD updates its…
The OECD has published a long-awaited update to its Commentary on Article 5 of the Model Tax Convention on the Avoidance of Double Taxation, which deals in more detail with the concept of a permanent establishment where employees work from home or…
SC: Employers' responsibility for occupational health and safety extends to…
The employer's obligation to ensure occupational health and safety (OHS) is traditionally perceived as an obligation towards their employees. However, in a recent landmark decision, the Czech Supreme Court confirmed that an employer's obligation to…
KPMG’s Tax and Legal Forum: Karel Šimka’s comments on SAC case law re ‘Svarc’ system…
The participants in the recent Tax and Legal Forum were given a behind-the-scenes look at the decision-making and functioning of the Supreme Administrative Court (SAC) by its president, Karel Šimka. We bring you part of the interview with him…
EU Council: customs will also apply to imported goods worth less than €150
The EU Council has agreed to abolish the €150 threshold below which customs duties are not payable on goods imported into the EU. The new measure should be introduced on a transitional basis as early as 2026, with full implementation in 2028.
Register of beneficial owners publicly inaccessible from 17 December 2025
The Ministry of Justice has announced that from 17 December 2025, it will make the Register of Beneficial Owners (in Czech: Evidence skutečných majitelů, ESM) publicly inaccessible. This step follows current European legislation and recent case law…
Is this the end of ‘forever chemicals’ in the EU?
The European Union plans to gradually restrict the use of ‘forever chemicals’ found in packaging, textiles and electronics and subsequently accumulating in nature and the human body. The aim is to protect the environment and human health.