Tax & Legal Update
Increase in VAT registration limit: main tax implications for entrepreneurs
The government has prepared tax changes aimed at simplifying tax obligations for entrepreneurs next year while also proposing to extend the extraordinary tax depreciation regime to 2022 and 2023.
VAT perspective on early termination of energy supplies
At a meeting of the Coordination Committee of the Chamber of Tax Advisors and the General Financial Directorate, the financial administration confirmed that compensation for the early termination of energy supplies or the failure to deliver an…
SAC paves way for assessment of additional tax on transactions with unrelated parties
The Supreme Administrative Court has opened transfer pricing’s Pandora's box by allowing tax administrators to assess additional tax based on overall profitability not just for related-party transactions, but also for transactions with unrelated…
Transfer pricing on audit committee‘s agenda?
Transfer prices are part of the agenda of almost every medium-sized and large company. If the company is subject to audit, its audit committee should also be involved. Because of the implications that incorrectly-set transfer prices can have for the…
Chamber of deputies partially abolishes road tax and supports electromobility
In response to high fuel prices, the chamber of deputies approved a government bill partly abolishing the road tax and granting tax advantages for the use of low-emission vehicles.
Amendment to Act on Register of Beneficial Owners
Less than a year has passed since the new law on the registration of beneficial owners came into force, and already the Ministry of Justice together with the Ministry of Finance is proposing an amendment to change, inter alia, the beneficial owner…
Fourth call to TRANSPORT 2020+
On 6 April 2022, the Technology Agency of the Czech Republic announced the fourth call to participate in the TRANSPORT 2020+ programme.
Overstepping search procedure boundaries may affect tax assessment deadline
In a recent decision, the Supreme Administrative Court commented on a tax administrator's overstepping of the boundaries of a search procedure, stating that the activity had in fact been a tax inspection. This had a major impact on the expiry of the…
VAT fixed establishments and foreign subsidiaries
The Court of Justice of the EU (CJEU) has dealt with the question of whether a parent company‘s VAT fixed establishment originates in another EU member state where its subsidiary is located and provides the parent company with marketing and other…
What comes after a tax inspection?
The tax inspection process can be long, but even the most tedious review will come to an end eventually. Let's take a look at how an inspection is closed, when the additionally assessed tax is due, how to defend against the inspection findings, and…
Chamber of deputies temporarily reduces excise duty on diesel oil and petrol
To mitigate the effects of the energy crisis on fuel prices, the government has proposed an amendment to the Excise Duty Act, whereby the excise duties on diesel oil and unleaded petrol are to be temporarily reduced by CZK 1.50 per litre from 1 June…