Tax & Legal Update
Gas and electricity price caps for large businesses from January: support conditions…
2023 will see electricity and gas prices capped also for large businesses regardless of whether they are low-voltage, high-voltage, or very high-voltage electricity consumers. If you wish to take advantage of support for high electricity and gas…
What’s new in tax for employees in 2023?
With the new year come changes in employee taxation as well as social security and health insurance. The maximum assessment base for social security contributions has increased and the limit from which wages are taxed at 23% has been raised. Many…
Monetary contribution to employee vacation: taxable income
In its recent decision, the Supreme Administrative Court upheld the state authorities’ interpretation as to what can be considered a non-monetary benefit to an employee from an employer. The ruling has implications for the exemption of the benefit…
How to set minimum share of low-emission vehicles in public procurement?
The new Act on the Support to Low-Emission Vehicles, which belatedly transposes into Czech law Directive (EU) 2019/1161 of the European Parliament and of the Council on the Promotion of Clean and Energy-Efficient Road Transport, stipulates a…
New rules on state aid for research, development, and innovation
In October, the European Commission adopted its revised rules on state aid for research, development, and innovation, replacing the existing 2014 framework and aiming to simplify the provision of state aid to boost investment into science, research…
CJEU on determining place of supply for services provided within VAT chain fraud
According to the basic rule, the place of supply for granting emission allowances is the place of the service recipient. Involvement in tax fraud has no effect on this determination, ruled the CJEU in case C-641/21 Climate Corporation Emissions…
Levy on surplus market revenues of electricity producers
In November, an amendment to the Energy Act passed through the legislative process at record speed, introducing a levy on surplus market revenues for most electricity producers and implementing part of EU Council Regulation 2022/1854 of 6 October…
SAC on claiming tax loss from transfer pricing adjustments abroad
Transfer prices are at the heart of many disputes with tax administrators not just in the Czech Republic but also abroad, often dragging on over many years. If tax is additionally assessed for one of group companies abroad, is it at all possible to…
Defence strategies for tax proceedings with possum-playing tax administrator
A tax administrator should proceed without undue delays, keeping with the principle of promptness of proceedings and procedural efficiency. However, this is not always the case. Therefore, in the following article of our Tips and Tricks section, we…
CJEU on disclosure of beneficial owner information
In EU member states, the legal regulation of beneficial owners and their registration is based on the AML Directive. Under the directive, information on beneficial owners within the territory of member states should be accessible to any member of…
Disguised legal act in payment of dividend to beneficial owner
In its recent judgment, the Supreme Administrative Court (SAC) dealt with a profit distribution payment to a Cypriot company. After assessing the entire context of previous transactions, the SAC held that the actual status had been disguised and…
New call under TREND to support research and development
On 23 November 2022, the Technology Agency of the Czech Republic (TA CR) announced the 9th call under the TREND programme, sub-programme 2. Support is available for projects aimed at launching research and development activities by entities that…