Tax & Legal Update
SAC on calculation of reduction coefficient upon sale of land
The Supreme Administrative Court (SAC) dealt with a case in which a sale of land was excluded from the calculation of the reduction coefficient. The taxpayer had sold land that they considered and accounted for as fixed assets. The tax administrator…
New retirement savings product: new options for long-term investment
The government will discuss a long-prepared amendment concerning financial market developments, in particular amending the Act on Capital Market Undertakings and introducing a new retirement savings product: a long-term investment product known as a…
Svarc system detection to be easier for the state
The Ministry of Labour and Social Affairs wants to fundamentally change the definition of illegal work. The length of work should no longer be relevant to conclude that a relationship is unlawful. The purpose of the change is to make work easier for…
Amendment to Labour Code: further changes for workers under agreements outside…
Agreements to perform work and agreements to complete a job (i.e., agreements on work performed outside employment) are very popular in the Czech Republic. The updated wording of the proposed amendment to the Labour Code, which was published by the…
Amendment to Labour Code: major changes to remote work rules
A draft amendment to the Labour Code is heading to the chamber of deputies. The bill has undergone significant changes since last autumn when it was first published. From an employers’ perspective, the changes to the rules for working from home are…
New savings product for retirement: conditions for claiming tax relief
With effect from 2024, the Ministry of Finance proposes to extend tax-efficient retirement savings with a new form - a long-term investment product. It is an alternative to the current 3rd pillar of the pension system (comprising supplementary…
Windfall tax: practical information on application
The financial administration has published answers to questions about the windfall tax, which is to be applied from 2023 to 2025. Below we summarise the most important conclusions.
Capping energy prices for large enterprises in April: another amendment and first…
With effect from 1 April 2023, the fourth amendment to the government decree on the determination of electricity and gas prices in an extraordinary market situation and on the determination of the related maximum permissible customer's financial…
Minimum tax: transitional safe harbour rules
A global minimum tax will apply from taxable periods beginning on or after 1 January 2024. It will be applied to groups with consolidated revenues of more than EUR 750 million. This is the same revenue threshold that obliges corporate groups to…
What are other defence options in tax proceedings?
In previous articles, we described the standard way to defend against the tax administrator's decisions the taxpayer did not agree with. Czech law also offers other ways to remedy a tax administrator’s incorrect decisions. In the Tax Procedure Code,…
Advertising services under scrutiny: recent case law
Reviewing the tax deductibility of advertising costs is still very popular with tax administrators during inspections. Below, we inform you about recent case law that could indicate what documents taxpayers should have on hand during an inspection…