Tax & Legal Update
Changes in international taxation probably as early as 2023
The G20 has endorsed the framework changes to international taxation agreed at the OECD level (including non-member countries) on 8 October 2021. The changes are spread across two pillars containing rules for shifting taxing rights on profits from…
Blue Card – future of EU labour mobility
Projections show that by 2070, the European Union will have 292 million people of working age, compared to 333 million in 2016. This trend would mean a significant decline in the workforce for the EU member states. This is one of the reasons why the…
Beware of high penalties when posting workers abroad
Although the European and Czech regulation of special rights of employees posted abroad is quite old, many employers are unaware of its existence or choose to ignore it arguing that no one will find out. With such ignorance, they are risking heavy…
When do penalties for additional tax returns arise? How to avoid them?
Generally, no penalty arises if the incorrectly paid tax is corrected in an additional tax return. Unfortunately, the amendment to the Tax Procedure Code effective from 1 January 2021 gives rise to situations where an additional tax return can lead…
Deputies do not approve digital tax
In the just-ended parliamentary term, the Czech Chamber of Deputies did not approve the bill on a digital service tax. Hence the bill would have to go through the entire legislative process again should the new government want to introduce a digital…
VAT on electricity and gas supplies to be waived
Based on Wednesday’s decision by the Minister of Finance, VAT on supplies of electricity and gas, their acquisition from another EU member state, and their imports is to be waived. The waiver shall apply to all supplies with the date of taxable…
National Recovery Plan offers new support opportunities
To revive the Czech economy after the COVID-19 pandemic, the Ministry of Industry and Trade has prepared the National Recovery Plan, a set of reforms and investments aiming to support Czech businesses and to reignite and modernise the Czech economy.
SAC: right to deduct input VAT always to be proved by the taxpayer
In a case involving an entity providing both taxable health services and services exempted from tax without the right to deduct, the Supreme Administrative Court (SAC) dealt with proving the link between the right to deduct and a specific output…
Transfer pricing: otherwise related persons and arm’s length price
The Supreme Administrative Court (SAC) has recently closed several cases dealing with the assessment of otherwise related persons - a concept from the area of transfer prices between group companies.
SAC yet again stands up for taxpayers
The Supreme Administrative Court (SAC) has confirmed that a payment to an unpublished bank account does not in itself give rise to the taxable supply recipient’s liability for unpaid VAT. It is always necessary to also prove that the taxpayer knew…
SAC: exchange of shares upon capital increase from own sources interrupts time test
The Supreme Administrative Court (SAC) has unambiguously concluded that the time test for exempting proceeds from the sale of securities from personal income tax is considered interrupted by an exchange of shares resulting from an increase in the…