Tax & Legal Update
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…
Minimising penalties: how to claim a default interest waiver?
The January amendment to the Tax Procedure Code has brought relatively significant changes to default interest, introducing a single default interest rate for both tax administrators and taxpayers of 8% + repo rate. However, taxpayers have tools at…
Ministry of Industry and Trade presents Czech Hydrogen Strategy
The EU member states have committed to achieving climate neutrality across the EU by 2050. Following this obligation, the Ministry of Industry and Trade presented the Czech Hydrogen Strategy at an international hydrogen conference held on 16 July…
Disposal costs of part of new assets’ input price?
With judgment No. 10 Afs 346/2020-43, the Supreme Administrative Court (SAC) has significantly contributed to clarifying when the costs of disposal of assets may be deducted from the tax base directly, and when they constitute investments and shall…
Amendment to Act on Banks
The implementation of CRR II and CRD V has been delayed. The amendment introduces changes to the responsibility of banks, credit unions and securities brokers and new authorisations of the Czech National Bank. Financial institutions must prepare…