Tax & Legal Update
Lease of real estate via Airbnb considered business activity
The Municipal Court in Prague confirmed that the provision of short-term leases via Airbnb meets the criteria of a business activity. Consequently, income from this activity shall be included in a separate tax base as income from an independent…
Intermediation in sale of extended warranties not to be excluded from coefficient…
The Court of Justice of the EU (CJEU) denied the full entitlement to VAT deduction to a company providing extended warranties during sales of goods. The sale of extended warranties may not be treated as a financial activity, ruled the court.
New income tax credit
Recently published in the Collection of Laws, an extensive amendment to the Enforcement Procedure Code and Civil Procedure Code among other things contains an amendment to the Income Tax Act introducing a new income tax credit for taxpayers in the…
Minimising sanctions: other options to reduce default interest
As a sanction associated with an additionally assessed tax, default interest can often be more severe than a penalty. Default interest waiver options, discussed in the previous issue of the Tax and Legal Update, are very limited where tax…
Changes in carer’s allowance and paternity leave
Ensuring equal opportunities for men and women and work-life balance have long been pressing issues on the European Union’s agenda, going hand in hand with the effort to allow fathers to be more involved in raising their children. One of the tools…
Another step towards digitisation in corporate law
The Ministry of Justice has prepared a bill to implement into Czech law further changes arising from the EU directive as regards the use of digital tools and processes in corporate law. The related amendment to the Notarial Code has already entered…
Fifth call under TREND
The Technology Agency of the Czech Republic (TA CR) will probably announce the fifth call to participate in the TREND programme, subprogramme 1 – Technology Leaders, only in December 2021. The original September date has been postponed due to the…
Transfer pricing remains under tax administrators’ scrutiny
The financial administration has published information about its tax inspections focusing on transfer prices between related parties. In 2020, tax administrators carried out 249 inspections, assessing additional corporate income tax of CZK 1.4…
Denying right to deduct VAT before entering bankruptcy compatible with EU directive?
The Court of Justice of the European Union (CJEU) has dealt with the refusal of the right to deduct VAT on taxable transactions carried out by a Romanian company before entering insolvency proceedings.
Tax and IT services for investment funds – exempted from VAT?
The Court of Justice of the European Union (CJEU) yet again dealt with the question of which services provided to collective investment undertakings can be exempted from VAT. In joined cases C58/20 and C59/20, the court outlined the conditions under…
August brings significant changes to regulation of foreigners’ residence in the CR
An amendment to the Act on Residence of Foreign Nationals has undergone a dramatic legislative process. After being vetoed by the senate and subsequently overruled by the deputies, the amendment was signed by the president and promulgated in the…