Tax & Legal Update
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.
Deductibility of interest on mortgage loans after 1 January 2021
On 1 January 2021, an amendment to the Income Tax Act entered into effect, reducing the annual limit of interest paid on mortgage loans or building savings loans to be deducted from the tax base from CZK 300 thousand to CZK 150 thousand. Uncertainty…
GFD’s Information on ATAD
The General Financial Directorate (GFD) issued its Information on Measures Arising from the Implementation of the Anti-Tax Avoidance Directive (ATAD), clarifying certain practical issues associated with the restricted deductibility of excess…
Financial administration’s response to queries regarding changes to tax depreciation
Extraordinary tax depreciation, adjusted limits for acquisition costs of tangible fixed assets or the cancellation of the intangible asset category are some of the most significant changes introduced by the January amendment to the Income Tax Act.…
2021 amendment to VAT Act introduces deemed supplier concept
The VAT position of electronic interface operators will change dramatically from 1 July 2021. In connection with a planned amendment to the VAT Act relating to e-commerce, individual e-shops ensuring the sale of goods from foreign suppliers will…
OECD on loss situation due to COVID
Lower levels of demand. Disruptions to supply chains. Increases in exceptional, nonrecurring operational costs. These are the key factors which have led to a loss situation faced by many companies of multinational groups during the COVID-19 pandemic…