Tax & Legal Update

No penalty for late payment of health insurance premium by employers for employees

Pursuant to an amendment to the Act on Public Health Insurance, until 21 September 2020, no penalties will be imposed for the late payment of health insurance premiums for employees for the period from March to August 2020.

Selected measures to mitigate coronavirus impact

Currently on their way to the chamber of deputies are government bills aiming to mitigate the impact of the coronavirus pandemic. The bills should help debtors subject to enforcement proceedings and lessees of non-residential premises, as well as…

News in brief, April 2020

Last month’s tax and legal news in a few sentences.

Temporary assignment of an employee: provision of service for VAT purposes

The Court of Justice of the EU (CJEU) dealt with the Italian San Domenico Vetraria SpA case (C-94/19) where a parent company assigned one of its directors to its subsidiary on a temporary basis. For this, they ‘only’ charged their costs incurred for…

SAC opines on frequent tax inspection targets

In its recent judgment (7Afs 472/2018) the Supreme Administrative Court (SAC) confirmed the conclusions of a tax administrator and the Regional Court of Justice in Ústí nad Labem. The SAC opined on supporting the tax deductibility of advisory and…

SAC rules against double taxation upon assignment of contractual sanctions

Regarding the assignment of contractual sanctions, the Supreme Administrative Court (SAC) determined what amounts should increase the tax base. According to the SAC, the tax base shall only be increased by the actual income from the assigned…

Another Czech case before CJEU: is there entitlement to VAT deduction if the supply…

The Supreme Administrative Court (SAC) referred two prejudicial questions to the Court of Justice of the EU (CJEU) concerning entitlements to VAT deductions. In the case in question, the taxable supply recipient failed to support who had provided…

Medical telephone consultations VAT exempt

In German case No. C48/19, the Court of Justice of the EU (CJEU) answered whether medical services provided in a form of a telephone consultation are exempt from VAT.

Transfer of tax residency within EU does not have to be tax neutral

The Supreme Administrative Court (SAC) has referred to the Court of Justice of the EU (CJEU) a prejudicial question whether Czech legislation disallowing to claim tax losses upon a change in the place of effective management within the EU is…

European Commission’s steps to fight coronavirus repercussions

Below we summarise certain steps adopted by the European Commission to fight the spread of COVID-19, primarily focusing on providing economic (material) assistance and loosening some regulations.

Exit tax – new criterion for cross-border restructuring

Effective from the taxable period started 1 January 2020, an amendment to the Income Tax Act introduced a tax on the relocation of assets without a change of ownership, i.e. exit tax. What cross-border transactions are subject to the exit taxation?

Different permit validities for family members of foreign employees

Like many other countries, the Czech Republic enables the relocation of employees together with their close family members, most often their spouses and children. Foreign nationals have been using this option very often, as they do not want to be…