Tax & Legal Update
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…
New areas of unqualified trade
With the transposition of new EU rules aiming to prevent the use of financial systems for money laundering or the financing of terrorism into Czech law, new activities were added to ‘unqualified trade’ under the Trade Licensing Act on 1 January 2021…
Alternative solutions to competition issues in Anti-Trust Office’s decision- making…
In the recent case, the Office for the Protection of Competition refrained from initiating sanction proceedings despite the alleged existence of an illegal price-fixing agreement. The office thus indicated its willingness to resolve some matters by…
Kurzarbeit finally given green light after one year
In a draft amendment to the Act on Employment submitted at the end of August last year, the Ministry of Labour and Social Affairs introduced its long-awaited concept for the provision of support during partial unemployment, the kurzarbeit (short…
New programme period: one trillion Czech crowns and simpler procedures for applicants
At the end of June, the Czech Ministry for Regional Development held a conference entitled “Green and Digital Czechia? But What About People…”, at which it presented the main goals and investment opportunities encompassed within the EU funds for the…
New tax credit amounts per second and third child in 2021 taxable period
An amendment to the Income Tax Act, which is part of the amendment to the Act on State Social Aid and introduces a higher annual tax credit per second, third and any subsequent child while simultaneously abolishing the maximum monthly tax bonus…
International taxation rules may change as early as 2023
In a joint declaration, 130 out of the 139 countries united under the OECD for the purpose of implementing the BEPS initiative have agreed on new rules for the international taxation of multinational corporations. The final wording of the rules,…