Tax & Legal Update
Government extending some subsidy programmes and introducing new ones
On 14 October 2020, the government approved several subsidy programmes for entrepreneurs affected by the coronavirus pandemic. This involves extending the effectiveness of some of the previous subsidy programmes and introducing some new ones. The…
Compensation bonus for the self-employed and small limited liability company members…
On 16 October 2020, the government approved a bill on compensation bonuses for entrepreneurs predominantly operating their business within closed segments of the economy. The bill proposes a compensation bonus of CZK 500 for every calendar day of…
More generous Regime A of Antivirus to continue until year end
On 14 October 2020, the government approved the extension of Regime A of the Antivirus programme until the end of this year. Effective from 1 October, for employers under forced restrictions of operations this type of support will be distinctly more…
Tax liberation package waives selected prepayments
The Ministry of Finance adopted another tax liberation package, postponing selected tax duties of entrepreneurs most affected by the government’s latest emergency measures by waiving road tax and income tax prepayments and VAT-related default…
Landmark case-law: softer penalties for transfer prices incorrectly set by companies…
The Supreme Administrative Court (SAC) has issued a ground-breaking judgment for companies drawing investment incentives under older schemes. The court confirmed that the failure to meet the condition not to increase the tax base for calculating tax…
CJEU approves French approach to regulating short-term leases
The Court of Justice of the European Union (CJEU) has sanctioned a French legal provision requiring in certain locations the prior authorisation by local authorities for short-term leases – typically leases arranged through digital platforms.
CJEU rules on adjustment of deductions claimed for capital assets
What is the situation as regards the modification/correction of VAT deductions claimed on capital assets if their use changes? And what if the assets have not yet been used but their intended use has changed? These were some of the issues the Court…
Is it possible to deduct VAT on induced investments?
The Court of Justice of the EU (CJEU) in the recent Mitteldeutsche Harstein-Industrie AG case (C-528/19) dealt with whether it is permissible to deduct input VAT on construction work carried out on a municipal road for the benefit of a municipality,…
SAC: Substantiating the performance of R&D activities is essential to claim an R&D…
According to the Supreme Administrative Court (SAC), when proving the development activity for the purposes of claiming an R&D allowance, it must be clear from the evidence how existing knowledge or skills were systematically applied and tested to…
SAC on deadline for correcting the VAT amount and on appealing against implicit tax…
In a recent judgment, the Supreme Administrative Court (SAC) held that it is possible to correct the VAT amount within three years of the end of the taxable period in which the tax liability arose, whereas it is not possible to appeal against…