Tax & Legal Update
Mere rental of real property not a VAT fixed establishment
In case C-931/19 Titanium, the Court of Justice of the European Union (CJEU) ruled against the existence of a fixed establishment for VAT purposes solely on the grounds of renting real property without the presence of staff in the country where the…
Practical implications of the Supreme Court’s decision on determining the scope of…
Corporate law has been shaken up by Supreme Court Decision No. 27 Cdo 3549/2020 on the nullity of a corporation’s founding acts stipulating “production, trade and services not specified in Appendices 1 to 3 of the Trade Licensing Act” as its scope…
Limits to shareholder agreement validity regarding board member instructions
In Judgment No. 27 Cdo 1873/2019-336, the Supreme Court (SC) dealt with the validity of clauses in shareholder agreements, making a significant contribution to the abundant case law concerning the boundaries between business and strategic management.
Constitutional Court more flexible on non-compete clauses in employment contracts
In May, the Constitutional Court dealt with the possibility of employers to withdraw from non-compete clauses. This court has a more liberal view of the matter than the Supreme Court which believes that an employer's withdrawal without giving a…
Companies to disclose income tax payment information
The European Commission has published a draft directive on the mandatory disclosure of information on income tax payments in individual member states and non-cooperative jurisdictions (public country-by-country reporting). The duty will apply to…
Beware of new standard contractual clauses when transferring personal data outside…
The European Commission has adopted two implementing regulations with significant impact on personal data processing. Effective from 27 June 2021, it is possible to use new standard contractual clauses for transferring personal data from the EU/EEA…
Registration of beneficial owners’ first month
The Act on the Registration of Beneficial Owners, a ground-breaking legal regulation, entered into effect on 1 June 2021. Since this date, the registry of beneficial owners has been available to the public and allows individuals to obtain a partial…
Amendment to Foreigners’ Residence Act not passed by Senate
In mid-June, the Chamber of Deputies approved the long-awaited bill to amend the Foreigners’ Residence Act and passed it on to the Senate. On 1 July, the Senate rejected the amendment. Below, we present the changes that the amendment was intended to…
Labour Inspection Office focuses on illegal employment and unlawful labour hire…
Illegal work and concealed agency employment are offences associated with the highest sanctions in the labour-law sphere, as the Labour Inspection Office may impose fines of up to CZK 10 million on employers. The office has been focusing on…
Minimising penalties - how to claim a waiver?
Depending on the results of a tax inspection, a penalty of 20% of the additionally assessed tax or 1% of the amount by which a tax loss was reduced may become due. This amount is fixed, and cannot be reduced by tax administrators on their own.…
Second call under COVID – Uncovered Costs programme
The Ministry of Industry and Trade has prepared a second call to participate in the COVID – Uncovered Costs programme, aiming to compensate for fixed costs incurred by entrepreneurs reporting significant decreases in sales compared with the period…