Tax & Legal Update
Amendment to Labour Code introduces new home office rules
The Ministry of Labour and Social Affairs has published an eagerly awaited draft amendment to the Labour Code introducing several new changes, the most significant one being the comprehensive regulation of home office. A more detailed regulation of…
CJEU again on right to deduct VAT in context of holding companies
The Court of Justice of the European Union has ruled on whether a holding company is entitled to deduct VAT on inputs relating to services provided as a shareholder’s contribution.
EC's landmark decision blocks merger of companies below turnover threshold
In a breakthrough decision, the European Commission has prohibited the merger of two US companies, Illumina and Grail, operating in the European biotechnology market. For the first time ever, the Commission did not allow a merger to proceed even…
Windfall tax outlined
The government has released a working paper on extraordinary profits tax (windfall tax) that it used in its negotiations with the National Economic Council of the Government (NERV). The finance ministry will now use the document as a basis for…
Social security perspective on cross-border work from home and remote work
During the pandemic, to allow some sectors to operate without major restrictions, employees often had to work from home or remotely. Working from home (including cross-border) has thus become a common part of working life, even in ‘post-covid’ times…
Can VAT be deducted within the adjustment mechanism even after the limitation period?
In the Dutch case of Company X (C-194/21), the Court of Justice of the European Union held that the adjustment mechanism should not be applied where the taxable person failed to exercise the right to deduct VAT and has lost that right due to the…
Tax deferment and waivers – what deadlines apply?
Waivers of default interest, penalties, interest on the deferred tax amount, and tax deferment itself offer interesting options for mitigating the negative effects of the assessment of additional tax. What are the relevant time limits for applying…
When claiming R&D allowance, attention must be paid to cost accounting
According to the Regional Court in Ostrava, when proving compliance with the conditions for claiming a research and development allowance, it is necessary that expenses incurred in the implementation of research and development projects are…
Austerity tariffs for gas and electricity – what about VAT?
The austerity tariff for households that the government has prepared in response to skyrocketing energy prices will be reflected in legislation as an amendment to the Energy Act. Details on the provision of a contribution for energy payments are set…
May tax administrator request information about movement of vehicles from traffic…
The Supreme Administrative Court (SAC) has confirmed that tax administrators may for tax purposes request from the Police of the Czech Republic information on the movement of particular motor vehicles processed within the automatic vehicle detection…
Beneficial owner registration: a game-changing amendment enters into effect in…
From 1 June 2021, the Beneficial Owner Registration Act following from the V. AML Directive has brought fundamental changes to the registration of beneficial owners in the Czech Republic, making life difficult for numerous companies and other…