Tax & Legal Update
How to avoid assessment of tax using auxiliary mechanisms?
In some cases, the tax administrator may determine tax even without the taxpayer's cooperation, using auxiliary mechanisms. We summarise below what this means for the taxpayer and how to avoid this situation.
Retirement savings products likely to face changes to compounding of savings periods
Amending proposals have been submitted as part of the forthcoming amendment to the Act on Child Care Services in Children’s Groups to ensure that savings periods are added up upon the transfer of funds to new retirement savings products and that the…
Can an additional VAT return be filed after the end of a tax inspection?
The Supreme Administrative Court (SAC) dealt with a dispute concerning the possibility of filing additional tax returns for lower tax after a tax inspection had been completed. The Supreme Administrative Court sided with the regional court which…
Employee stock option plans to revert to old rules of taxation of income from…
After almost a year of uncertainty over the taxation of income from employee stock option plans, a proposal to amend the Income Tax Act was submitted by deputies during the discussion of an amendment to the Act of Child Care Services in Children’s…
Increased tax support for donations to apply until 2026
The chamber of deputies proposes to extend the applicability of the increased limit on the value of donations that taxpayers may deduct at 30% of the tax base until 2026. It also proposes to maintain the tax relief for donations made in support of…
CJEU: Electricity is commodity
The Court of Justice of the EU (CJEU) has ruled that a German company must charge Swedish VAT on supplies of electricity at charging stations in Sweden. The judgement provides clear rules for the taxation of electricity and highlights differences…
CJEU: VAT deduction on assets provided to suppliers free of charge
The Court of Justice of the EU (CJEU) has ruled in favour of the taxpayer in a dispute between an Austrian company and the Romanian tax authority over the deduction of VAT on an asset provided to a subcontractor. The tax authority had challenged the…
Flood 2024 programme: support for businesses through contributions for wage expenses
For businesses affected by this year’s floods, the government has approved the provision of support through contributions for wage expenses. The contributions will be provided under the Flood 2024 programme launched by the Ministry of Labour and…
Sale and exchange of crypto-assets: proposed exemption from personal income tax
The chamber of deputies is currently discussing a bill amending certain laws in connection with the implementation of EU regulations on the digitisation of the financial market and sustainability financing (Print 694). During the second reading, a…
Forms of R&D support available in the Czech Republic
Research and development (R&D) are key factors for economic growth and competitiveness. In the Czech Republic, support for R&D is one of the objectives of its subsidy policy that aims to foster innovation and technological progress. Support is…
Procedural options for flood-affected taxpayers
All tax relief options contained in the Czech Financial Administration’s notice in response to the recent flooding have been summarised in a recent article. In this issue, we thus focus on the procedural options open to taxpayers affected by this…