Tax & Legal Update
Support for businesses hit by the coronavirus outbreak
The steps taken in response to the spread of the new coronavirus will have broad economic effects on business entities. We have prepared an overview of potential support and other key measures being negotiated by the government with business…
COVID-19: tax package
The government approved a package of liberating tax measures to mitigate the impact of coronavirus pandemic.
Effect of emergency measures on business relationships
The series of governmental resolutions adopted in response to the coronavirus epidemy has a substantial effect on all aspects of business. Below we summarise the main legal aspects of business obligations/relationships that may be relevant in the…
How government restrictions on business affect employee relations
On 14 March 2020, in response to the coronavirus outbreak, the Czech Government adopted a crisis measure that, with certain exceptions, banned retail sales and the provision of services at restaurants, sports facilities, wellness centres and other…
Closure of borders - overview of adopted measures
In connection with the announcement of a state of emergency, we would like to summarise the basic restrictions for Czech citizens and foreigners permanently staying or working in the Czech Republic or planning to come to the Czech Republic.
How to time resignation to comply with due managerial care
According to the Supreme Court (SC), members of a corporation’s elected body may resign from their offices and the corporation cannot stop them. However, if they do so at a time unsuitable for the corporation, they shall be liable for the damage…
‘Keeping of assets’ for investment incentive purposes – to own, or not to own?
The Supreme Administrative Court (SAC) held that to prove compliance with the condition of ‘keeping the assets’, it should suffice that the investment incentives recipients prove that the assets were kept in the supported region, regardless of the…
DAC7 at last? European Commission targets digital platforms and sharing services
With the implementation of DAC6 underway in Europe, the European Commission has now submitted an initiative that may bring the seventh revision of the Directive on Administrative Cooperation in the Field of Taxation. It focuses on digital and shared…
BEPS 2.0: progress and setbacks
The preparation of BEPS 2.0, new rules for the taxation of the digital economy, has made some progress. Preliminary consensus has been reached on Pillar 1, defining a new rule according to which income will be taxed in the state of sale even if the…
OECD releases Transfer Pricing Guidance on Financial Transactions
The OECD released the long-awaited final version of a report on the pricing of related party financial transactions, which is part of BEPS Action Plans 4, 8-10 and will be implemented into the OECD Transfer Pricing Guidelines. The report focuses on…
Coronavirus – new challenge for employers
The spreading of the coronavirus infection puts companies in a difficult position. HR specialists in particular worry about how to effectively protect employees while keeping their business in operation. The situation is further complicated by the…