Tax & Legal Update
SAC on existence of a permanent establishment
In its recent decision, the Supreme Administrative Court (SAC) dealt with selected facts giving rise to a foreign entity’s permanent establishment in the Czech Republic. In particular, the court pointed out that the tax administrator must produce…
SAC on proving indirect shareholding expenses
The Supreme Administrative Court (SAC) has recognised that it is not easy to prove the exact amount of overhead (indirect) expenses related to holding a share in a subsidiary. However, this practical pitfall does not change the fact that if a…
Providing financial services from the UK post-Brexit
The end of the Brexit transition period has had a huge impact on UK companies providing any kind of financial services. From 1 January 2021, it is no longer possible to enjoy the benefits of the freedom of establishment and freedom to provide…
Brexit: Protocol on UK-EU social security coordination
After endless negotiations between the UK and the EU, a deal was struck at the turn of 2020, avoiding a hard Brexit. Among other things, the EU-UK Trade and Cooperation Agreement makes it possible to continue applying some EU social security rules…
One step closer to interconnecting commercial registers within EU
The harmonisation of EU law regarding the use of digital tools and processes in corporate law has taken on a concrete form: an amendment to the Act on Public Registers, implementing a part of the changes prescribed by the EU directive into Czech law…
Changes to Qualified Employee relocation programme
As of 1 January 2021, both the minimum wage and the lowest guaranteed wage level have increased. This affects, among other things, one of the programmes for the economic migration of foreigners – the Qualified Employee programme. And this is not the…
Compensation for work accidents in light of amendment to Labour Code
Effective 1 January 2021, an amendment to the Labour Code changed the rules of compensation for accidents at work and occupational diseases, introducing a one-time compensation to close persons for non-material damage in the event of particularly…
OP EIC: deadlines prolonged and funds for allocation increased
The deadlines for submitting applications to participate in certain programmes under the Operational Programme Enterprise and Innovations for Competitiveness (OP EIC) have been extended. Moreover, funds for allocation within the Innovation programme…
When does entitlement to VAT deduction arise on provision of export insurance?
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors have discussed the entitlement to VAT deduction on insurance provided in connection with the export of goods to a third country. A few situations that…
Amendment to VAT Act for 2021: Simplification not only for e-shops?
Are you offering your goods via e-shops? Shipping low-value consignments directly to end users also from countries outside the EU? Organising training seminars, concerts, trade fairs or sports events across the EU? Be on the alert and prepare…
OECD guidance on the transfer pricing implications of the COVID-19 pandemic
The unique economic conditions arising from COVID-19 and government responses to it have resulted in challenges for the application of the arm’s length principle. To enhance tax certainty in the face of such challenges, the Organisation for Economic…