Tax & Legal Update
Calls to OP EIC attract interest; other calls are to be announced
Below we provide an overview of open calls within the Operational Programme Enterprise and Innovations for Competitiveness (OP EIC) and their current status. A new call within the Infrastructure Services programme has been announced and other calls…
Brexit: What will happen to social security and health insurance in 2021?
The end of 2020 will also bring the end of the transition period under the Agreement on the Withdrawal of the UK from the EU. During the transition period between 1 February 2020 and 31 December 2020, the United Kingdom is being treated as if it…
Practical pitfalls of quick fixes
An amendment to the VAT Act implementing long-awaited changes to the intracommunity supply of goods (quick fixes) entered into effect on 1 September 2020. We may already comment on the first practical implications for taxpayers and on solutions to…
Government extending some subsidy programmes and introducing new ones
On 14 October 2020, the government approved several subsidy programmes for entrepreneurs affected by the coronavirus pandemic. This involves extending the effectiveness of some of the previous subsidy programmes and introducing some new ones. The…
Compensation bonus for the self-employed and small limited liability company members…
On 16 October 2020, the government approved a bill on compensation bonuses for entrepreneurs predominantly operating their business within closed segments of the economy. The bill proposes a compensation bonus of CZK 500 for every calendar day of…
More generous Regime A of Antivirus to continue until year end
On 14 October 2020, the government approved the extension of Regime A of the Antivirus programme until the end of this year. Effective from 1 October, for employers under forced restrictions of operations this type of support will be distinctly more…
Tax liberation package waives selected prepayments
The Ministry of Finance adopted another tax liberation package, postponing selected tax duties of entrepreneurs most affected by the government’s latest emergency measures by waiving road tax and income tax prepayments and VAT-related default…
Landmark case-law: softer penalties for transfer prices incorrectly set by companies…
The Supreme Administrative Court (SAC) has issued a ground-breaking judgment for companies drawing investment incentives under older schemes. The court confirmed that the failure to meet the condition not to increase the tax base for calculating tax…
CJEU approves French approach to regulating short-term leases
The Court of Justice of the European Union (CJEU) has sanctioned a French legal provision requiring in certain locations the prior authorisation by local authorities for short-term leases – typically leases arranged through digital platforms.
CJEU rules on adjustment of deductions claimed for capital assets
What is the situation as regards the modification/correction of VAT deductions claimed on capital assets if their use changes? And what if the assets have not yet been used but their intended use has changed? These were some of the issues the Court…