Tax & Legal Update
European Union responds to US tariffs with retaliation
Last month, the US administration led by President Donald Trump imposed 25 percent tariffs on steel and aluminium imports from Europe. In response, the European Commission is imposing retaliatory tariffs on a wide range of US goods.
Introduction of digital systems for EU travel delayed
The European Union is working on the introduction of two new digital systems to track and record the travel of foreigners into the Schengen area: the Entry/Exit System (EES) and the European Travel Information and Authorisation System (ETIAS). These…
Simplified CBAM application rules
The European Commission has presented new packages of legislative proposals (Omnibus I and II) aiming to simplify the current EU environmental rules. This will promote a more business-friendly environment allowing European companies to grow,…
Working conditions under scrutiny – deputies pass ‘Flexinovela’
At the beginning of March, the chamber of deputies approved a closely watched amendment to the Labour Code, the ‘Flexinovela’, which will introduce significant changes. It will now be discussed by the senate and then submitted to the president for…
Verification of signature of share transfer agreement by attorney
The Supreme Court (SC) dealt with the question of the validity of an agreement on the transfer of shares in a limited liability company where the signature of the transferee was verified by an attorney who at the same time signed the share transfer…
Transfer pricing when processing raw materials: new case law
Recent case law provides a new perspective on the method of setting transfer prices in situations where a taxpayer formally owns raw materials but all risks associated with the ownership are borne by another party. The judgment may have implications…
Employee stock option plans: GFD information for 2024 and 2025 taxable periods
The GFD has recently issued its information for employers and employees in connection with employee income from the acquisition of a share in a business corporation or an option to acquire such a share under employee stock and option plans in the…
Single monthly employer reporting and related changes to income tax
In the beginning of March 2025, the government approved a bill on single monthly employer reporting (in Czech Jednotné měsíční hlášení zaměstnavatelů or JMHZ), which the Ministry of Labour and Social Affairs wants to launch from 2026. It should…
GFD unifies procedure for waiving tax penalty and interest
The General Financial Directorate has issued Instruction D-67, which unifies the procedure of waiving tax accessories – fines, penalties, or interest. The instruction is effective from 1 March 2025 and brings several changes compared to Instruction…
Another call under TRANSPORT 2030 programme
The new call under the TRANSPORT 2030 programme offers opportunities for the advancement of applied research, experimental development and innovation in the transport sector, focusing on sustainable, automated, and environmentally friendly transport…
Possibility to deduct interest on loans extended
The chamber of deputies is currently debating a legislative proposal to amend certain laws in connection with the adoption of the Housing Support Act. The bill contains numerous measures that should contribute to greater affordability of housing.