Tax & Legal Update
Grant and investment opportunities for European defence industry
In 2024, the European Commission made EUR 910 million available through the European Defence Fund (EDF). More than EUR 1 billion remains available for projects this year. This initiative is a key step towards strengthening the defence industry in…
Changes in tax legislation: news for ESOPs, abolition of limit for exempting…
During the debate of the draft Act on Single Monthly Employer Reporting (in Czech: jednotné měsíční hlášení zaměstnavatele or JMHZ) in the chamber of deputies, several amending proposals have been submitted and attached to the bill as legislative…
Effects of tariff changes on transfer prices
The arrival of the new US administration signalled a major turning point in the US approach to international trade. The first months suggest a possible shift away from liberalisation, with tariffs being used to advance US trade interests. For Czech…
Assignment of receivables secured by pledge agreement
The Supreme Court of the Czech Republic dealt with whether an assignment of a receivable arising from a secured obligation also transfers the ancillary clauses of the pledge agreement, e.g. the right to demand a contractual penalty, to the new owner.
Supreme Court: Can blank promissory note be redeemed?
In resolution No. 29 Cdo 2073/2022, the Supreme Court of the Czech Republic has taken the view that it is possible for a blank promissory note to be redeemed, i.e. reestablished in court.
How to extend the deadline for filing income tax returns?
What to do if the six-month deadline seems insufficient to prepare your income tax return, or if for whatever reason you’ve failed to file within earlier deadlines?
Extension of loan interest deduction: new tax relief for cooperative housing
The Senate of the Czech Republic approved a bill extending the possibility to deduct interest from the personal income tax base: apart from interest on mortgage loans, it will also be possible to deduct interest on housing cooperatives’ loans. An…
CJEU on VAT treatment of subsidies in public transport
The Court of Justice of the European Union (CJEU) addressed whether a lump-sum compensation provided by a region to a public transport operator to cover their loss is a part of the taxable amount for VAT purposes. In the present case, the…
VAT treatment of compensation for stolen goods
The Coordination Committee of the Chamber of Tax Advisors and the General Financial Directorate recently considered compensation for stolen goods from a VAT perspective and concluded that such compensation is only subject to VAT if two conditions…
Top-up taxes: information exchange within EU and other legislative developments
On 6 May 2025, Council Directive (EU) 2025/872 amending Directive 2011/16/EU on administrative cooperation in the field of taxation was published in the EU Official Journal. The directive creates the conditions for the EU-wide filing of single top…
Employee stock and option plans: notifying tax administrator of taxation postponement
The amendment to the Income Tax Act under which the taxation of an employee’s income from share and option plans can only be postponed if the employer notifies the tax administrator of this choice, became effective from 1 April 2025. The General…