Tax & Legal Update
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…
New Real Estate Brokerage Act to enhance consumer rights
The Real Estate Brokerage Act entered into effect on 3 March 2020. Potential buyers, sellers or users of real property will gain a range of new rights.
Amendment to the Labour Code (Part II): delivery rules
The Labour Code stipulates documents that only have legal effect once they have been delivered to the employee’s own hands. Apart from documents concerning the establishment, change or termination of employment, these include, e.g., itemised wage…
First European regulation of online platforms
An EU regulation on promoting fairness and transparency for business users of online intermediation services will enter into effect on 12 July 2020. It will be the first law in the EU regulating platform-to-business (P2B) relationships.
Benefit cards considered vouchers under VAT Act
At the Coordination Committee’s meeting, the Chamber of Tax Advisors agreed with the General Financial Directorate (GFD) on the VAT treatment of benefit cards. Benefit cards enable their holders to acquire pre-defined benefits from pre-defined…
Employers’ perspective on plug-in hybrid vehicles
Until recently, Czech tax and labour-law legislation lacked any regulation of plug-in hybrid vehicles. If employers provided such vehicles to their employees for both business and private purposes, the determination of the employee’s non-monetary…
GFD publishes information on research and development allowances
In its information, the General Financial Directorate (GFD) comments on the amended regime for claiming research and development allowances, especially with respect to the new duty to notify the tax administrator of the intention to claim such an…
Quick fixes: chain transactions and transport allocation
The Czech amendment to the VAT Act implementing quick fixes is still awaiting the second reading in the chamber. Its effectiveness is therefore being postponed once again. In the meantime, the European Commission has issued its explanatory notes on…
Amendment to Tax Procedure Code heading to the Senate – summary of major changes
An amendment to the Tax Procedure Code has passed the Czech Chamber of Deputies in its third reading. According to the Minister of Finance, the amendment will allow for the implementation of an online tax authority, formed on the ground plan of a…
How to shield your business from the impact of COVID-19
The first cases of COVID-19 (Coronavirus) infection have been confirmed in the Czech Republic. So far, nobody has been able to predict with certainty what course this epidemic will take and how the Czech economy will be affected. Hence,…