Tax & Legal Update
Antivirus programme update
At the beginning of April, the Ministry of Labour and Social Affairs launched the “Antivirus” programme, enabling employers to get a partial refund for the compensations for salaries they had to pay to their employees due to certain impediments to…
Reduction of penalties for late payment of social security premiums by employers
The Government approved a legislative proposal reducing penalties for late payment of social security premiums and contributions to the State employment policy by the employer. The proposed measure aims to improve the employers’ cash flow by…
Further loosening of rules for foreigners
On 4 May 2020, the government adopted several resolutions significantly expanding the options for foreign employees to come to work in the Czech Republic, thus at least partially accommodating the needs of employers. The government should resume the…
Compensation bonus for members of limited liability companies with no employees or…
The government has passed an amendment to the Act on Compensation Bonuses, allowing them to be also paid to members of limited liability companies (‘s.r.o.s’) that have no employees and no more than two members, or members who belong to a single…
COVID-19 and intra-group services – a transfer pricing perspective
Implementing emergency plans, trying to keep a positive cash flow, or monitoring the quick succession of legislative changes adopted in connection with the coronavirus pandemic – these have become corporate management’s daily bread. Remuneration…
Government proposal to abolish immovable property acquisition tax goes to chamber of…
At its session on 30 April 2020, the government passed a proposal to abolish the tax on the acquisition of immovable property, with retrospective effect. Individuals will no longer have the option to deduct from their income tax base interest paid…
Posting of workers from a VAT perspective
In practice, companies often do not pay enough attention to the possible implications of posting high-ranking managers to the Czech Republic to manage or supervise another group entity. A number of these arrangements meet the definition of a VAT…
CJEU dealt with assigning of transport in a Czech case
In a Czech case (Herst), the Court of Justice of the EU (CJEU) dealt with assigning intra-Community transport to a transaction in a situation where transportation was arranged by the last entity in a chain, and goods were purchased and resold…
Amendment to Civil Code abolishes pre-emptive right
In April 2020, an amendment to the Civil Code that may significantly enhance the liquidity of residential units was published in the Collection of Laws. Although a drop in real property prices is expected in connection with the COVID-19 outbreak,…
Permits to mediate employment complicate employment of foreign nationals
Last year’s amendment to the Act on the Residence of Foreign Nationals forbids foreigners with employee cards to change their employers if these are employment agencies, i.e. entities holding a licence for the mediation of employment. These involve…
Will tax administrators have to file taxpayers’ financial statements in the…
At the end of January, a group of deputies submitted a draft amendment to the Act on Public Registers that introduces the duty of tax administrators to file on behalf of individuals and corporate entities recorded in public registers their ordinary,…
Amendment to VAT for 2021: e-commerce
From 2021, a special mini-one-stop-shop regime will also apply to the sale of goods by mail order. Under the new amendment, such sales will be taxed in the recipient’s country, potentially excepting small businesses. For harmonisation purposes, the…