Tax & Legal Update
Municipal court: VAT and gratuitous supply of land
The Municipal Court in Prague stated in its judgment that the tax base upon a contribution of land into a business company is its residual value if the right to deduct VAT was at least partially claimed upon its acquisition.
Supreme Court: landmark decision on termination of employment of foreigners
Czech legislation sets strict conditions for the employment of foreigners, especially from non-EU countries. Failure to comply with these conditions may result in fines of up to CZK 10 million and other negative consequences. Nonetheless, this…
Health checks for workers under agreements on work outside employment discussed again
Since 1 June, an amendment to the Labour Code (the Flexinovela amendment) has brought employers a major loosening regarding occupational health examinations, as it abolished the obligation to carry out initial health examinations for employees…
One Big Beutiful Bill
On May 22, the US House of Representatives passed a bill with the unusual title of the One Big Beautiful Bill Act (OBBBA).
Top-up tax: tax return and information return form
The Ministry of Finance has published a draft decree setting out forms for the tax return and the information return for allocated and Czech top-up tax. The tax return is common for both taxes, as is the information return, which is based on the…
Amendment to AICIF: What will it bring and what to prepare for?
The Ministry of Finance has prepared an extensive amendment to the Act on Investment Companies and Investment Funds (AICIF)reflecting the EU AIFMD II directive. Most of it is expected to enter into effect on 16 April 2026 but some of its parts as…
Impact of US tariffs
The US government is introducing new tariffs on imported goods, which may increase costs for businesses. In collaboration with our US colleagues, we would like to draw your attention to several aspects that can affect the extent of the tariffs, such…
Grant and investment opportunities for European defence industry
In 2024, the European Commission made EUR 910 million available through the European Defence Fund (EDF). More than EUR 1 billion remains available for projects this year. This initiative is a key step towards strengthening the defence industry in…
Changes in tax legislation: news for ESOPs, abolition of limit for exempting…
During the debate of the draft Act on Single Monthly Employer Reporting (in Czech: jednotné měsíční hlášení zaměstnavatele or JMHZ) in the chamber of deputies, several amending proposals have been submitted and attached to the bill as legislative…
Effects of tariff changes on transfer prices
The arrival of the new US administration signalled a major turning point in the US approach to international trade. The first months suggest a possible shift away from liberalisation, with tariffs being used to advance US trade interests. For Czech…
Assignment of receivables secured by pledge agreement
The Supreme Court of the Czech Republic dealt with whether an assignment of a receivable arising from a secured obligation also transfers the ancillary clauses of the pledge agreement, e.g. the right to demand a contractual penalty, to the new owner.