Tax & Legal Update
Ministry of Industry and Trade completes OP TAC preparations
According to the Ministry of Industry and Trade, preparations for a new Operational Programme Technology and Application for Competitiveness (OP TAC) for the 2021–2027 programme period have been officially completed. The programme has already been…
SAC stands up for taxpayer over deducting costs of destroyed goods
The Supreme Administrative Court (SAC) upheld a taxpayer's cassation complaint in a dispute over the legitimacy of claiming costs/expenses for destroyed goods. According to the SAC, without informing the appellant the appellate body assessed the…
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…