Tax & Legal Update
New COVID-related business support programmes
The government announced new programmes to support business activities: COVID – Uncovered Costs and COVID – 2021. Applications will again have to be submitted through the Ministry of Industry and Trade’s Agenda Information System (AIS MPO) portal as…
Waiver of sanctions for late filing of 2020 income tax returns
With respect to the persisting effects of the SARS-COV-2 pandemic, the Ministry of Finance has issued another liberation measure that under certain conditions waives the penalties charged to taxpayers for the late filing of income tax returns for…
Obligatory testing of employees
On 1 March 2021, the Ministry of Health issued an extraordinary measure, ordering the obligatory testing of employees at companies. The measure is effective from 3 March 2021 until further notice.
Transfer pricing - comparability analysis in times of COVID-19
The unprecedented changes in the economic environment following the outbreak of COVID-19 have created unique challenges for setting prices in intra-group transactions. The correct setting or verification of transfer prices for the past year while…
Remuneration for making funds available using promissory note VAT exempt?
In judgment C 801/19 FRANCK, the Court of Justice of the European Union (CJEU) held that remuneration for the transfer of funds provided by a factoring company to a debtor is, from a VAT perspective, a transaction in securities, therefore exempt…
SC further tightens conditions for withdrawal from non-compete clause
The recent Supreme Court (SC) judgement marks a further tightening of conditions for employers who decide to withdraw from a non-compete clause negotiated with their employee. According to the judgment, arrangements that give the employer the option…
French court outlines new permanent/fixed establishment concept for digital sector
The court’s decision brings an entirely new view on a permanent/fixed establishment for companies operating in a digital sector. Will other EU member states also get inspired?
Right to disconnect? Higher protection of employees in sight
The European Parliament has asked the European Commission to submit a draft directive allowing employees to log off from work after working hours without being sanctioned for such behavior in any way. According to the parliament, the expansion of…
New Foreign Investment Screening Act
On 1 May 2021, the new Foreign Investment Screening Act will enter into effect, introducing tools to review direct investments from third countries for their implications for the Czech Republic’s security and internal order. The act may hinder the…
Act on Registration of Beneficial Owners: six month to update data
The new Act on the Registration of Beneficial Owners has been published in the Collection of Laws and will enter into effect on 1 June 2021. All business corporations must update the data recorded in the beneficial owners' register within six months…
New arrival rules for the Czech Republic
Since 1 March, a new protective measure of the Ministry of Health has been in effect, yet again tightening the rules for arrival from abroad and changing the existing ‘traffic light’ system (Semafor). For the purposes of this measure, foreign…
TA CR announces fourth THETA programme call
On 10 February 2021, the Technology Agency of the Czech Republic announced the fourth call for proposals under the THETA programme supporting applied research, experimental development and innovation.