Tax & Legal Update
SAC: Justifiable grounds for waiving penalties broader in practice than specified in…
In its recent judgment, the Supreme Administrative Court (SAC) held that, when interpreting justifiable grounds for waiving penalties for the failure to report exempt income, administrative bodies must examine the specific circumstances of each…
Czech Republic implements MLI into double taxation treaties
The Czech Republic has joined the states that have deposited their instruments of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI, short for multilateral…
AML changes about to be finalised
Although the deadline for the implementation of the fourth and fifth AML Directives has already expired, the Czech Republic has not yet adopted adequate implementing regulations and is now facing infringement proceedings from the European Commission…
How to prepare for the amendment to the Corporations Act
On 1 January 2021, an amendment to the Corporations Act will enter into effect, bringing a number of changes to corporate law. Most of the mandatory provisions of the amended law will be enforced against provisions of founding documents that are in…
Coordination Committee: When can the sale of real property be treated as losing…
The Czech Chamber of Tax Advisors submitted a paper for discussion to the Coordination Committee of the General Financial Directorate (GFD) and the Chamber of Tax Advisors dealing with when, from a VAT perspective, a transaction can be treated as a…
Impact of health ministry’s protective measures on travel and employment in the CR
Since 5 October 2020, a new protective measure of the Ministry of Health has been in effect, aiming to slow down the spread of COVID-19 in the country. The measure restricts the crossing of borders by both Czech citizens and foreigners, and is…
Czech digital tax: when and in what form to expect it
A proposal for the introduction of a digital tax has been before the chamber of deputies for several months now. The originally proposed effectiveness from mid-2020 has come and gone. The introduction of this tax is currently being debated again.
Reporting under DAC 6 postponed in the Czech Republic and other EU member states
The Czech Republic has utilised the option to postpone reporting duties arising from DAC 6 until the first months of 2021, as made possible by the COVID-19 DAC amendment adopted in response to the COVID-19 pandemic. Notably, some EU member states…
Current state of subsidy programmes
The end of the Operational Programme Enterprise and Innovation for Competitiveness (OPEIC) period is approaching. Below, we provide an overview of the calls currently open, mainly focusing on research and development and innovations in production.…
Changes to tax depreciation to support investment
Among other things, the government intends to reboot the economy with measures relating to corporate income tax, proposing a reduction of the tax depreciation periods for a selected group of tangible fixed assets, an increase of the limit for…
Supreme Court: same wage for same work in Prague and elsewhere
The Supreme Court (SC) ruled that a driver working in the regional town of Olomouc is entitled to the same wage as a driver working for the same employer and at the same position in Prague. According to the SC, external social and economic…
Last calls for Potential, Innovation and Application Programmes
In late August and early September, the Ministry of Industry and Trade announced the long-awaited last calls within the Enterprise and Innovation for Competitiveness Operational Programme (OPEIC). These include calls to participate in programmes…