Tax & Legal Update
Adaptation/integration courses for foreigners in the CR
The adaptation and integration of foreigners has been a hot topic worldwide. The first element of foreigner integration was introduced to Czech legislation already in 2009 in the form of a Czech language exam as a precondition for certain types of…
Immovable property acquisition tax – to pay or not to pay?
The bill to abolish the immovable property acquisition tax is currently going through the legislative process. The Ministry of Finance had expected it to pass smoothly and become valid by the end of 2020. The related extraordinary measure of June…
Who will benefit from abolition of super-gross wage?
The government has decided to proceed with the long-promised abolition of the super-gross wage, while at the same time introducing the progression of personal income tax. The Chamber of Deputies is currently debating an amendment to tax laws, which…
The Ministry of Labour and Social Affairs has presented ‘kurzarbeit’
At the end of August, the Ministry of Labour and Social Affairs published a draft amendment to the Employment Act introducing into Czech law the long-awaited support during partial unemployment, commonly called ‘kurzarbeit’. Kurzarbeit is to replace…
The government has decided: Antivirus A and B to continue until the end of October
On 24 August 2020, the government approved the extension of the present regimes A and B of the Antivirus programme until 31 October 2020; originally, both were supposed to end at the end of August. Regime C, comprising the waiver of social security…
Is it possible to correct tax base for claims not lodged in insolvency proceedings?
In Case C-146/19, the Court of Justice of the EU (CJEU) held that a creditor may adjust the VAT base for a claim not lodged in insolvency proceedings if they prove that the claim would have been irrecoverable even if it had been lodged in…
Compensation for unrealised service paid upon early contract termination subject to…
The Court of Justice of the EU (CJEU) held that the amount paid by customers upon early terminations of contracts should be considered part of the price for services and thus subject to VAT. The CJEU based its judgment primarily on the recent…
SAC: Special regulation of period for assessing tax overrides general regulation
The Supreme Administrative Court dealt with the relationship between the general regulation of the period for assessing tax under the Tax Procedure Code and the special regulation of the period under the Income Tax Act in respect of the commencement…
CJEU: Services associated with both taxable and exempt supplies may not be partially…
In the BlackRock Investment Management (UK) Ltd (C-231/19) case, the Court of Justice of the EU (CJEU) ruled on whether it is possible to treat a service provided via an IT platform used for both exempt and taxable supplies as a supply exempt from…
European Commission’s first plans for tax reform within the EU
In mid-July, the European Commission published a first draft of a new tax package aimed to boost the economy and create fair and simple taxation rules within the EU. A more detailed version will be published at the end of 2020, should the OECD’s…
CJEU: Member states not obliged to act in concert
Transportation of goods sold to another member state in form of distance selling can be considered effected by the supplier or on its behalf also when the transport agreement with the carrier is concluded by the customer and the supplier plays an…