Tax & Legal Update
Regulated gender ratio in companies
The Czech Republic must comply with obligations under EU law regarding the gender balance in the management of certain listed companies. The Minister for European Affairs proposes to stipulate the new obligations in an amendment to the Capital…
SAC on VAT exemption for intra-community supply
The Supreme Administrative Court (SAC) did not recognise the right to VAT exemption for a supply of goods to another EU member state, as there were doubts whether the goods had been supplied to a person registered for tax in another member state,…
Technical amendment to consolidation package on horizon
As part of the second reading of an amendment to the Act on Investment Companies (Print 570), the coalition deputies have submitted proposals to amend the Income Tax Act and other laws amended at the end of 2023 within the consolidation package,…
CJEU: Is being a board member of a public limited company an economic activity?
The Court of Justice of the European Union has ruled that the activity of a Luxembourgian board member of public limited companies is not carried out independently if the member neither acts on their own behalf and responsibility nor bears the…
Redefining relevant market in competition law
For the first time since 1997, the European Commission has adopted a new notice on the definition of the relevant market. The definition plays a crucial role in the assessment of cartels and mergers, and in other areas of competition law. The notice…
Details of 2025 amendment to VAT Act - Part I
The draft amendment to the Value Added Tax Act, currently in the external comment procedure, introduces extensive changes as it transposes EU directives and responds to CJEU rulings and practical experience. Below we present the first part of these…
Some OP TAC calls postponed
The Ministry of Industry and Trade has updated the schedule of calls to participate in the Operational Programme Technology and Applications for Competitiveness for 2024, postponing several calls also designed for large enterprises.
SAC on application of essential costs
Several recent administrative court decisions have dealt with the question in what circumstances it is necessary to consider essential costs even if the taxpayer has failed to fully prove them. The issue was therefore addressed by an extended…
Can penalties be waived where abuse of tax law has been involved?
Cases of abuse of law are nothing new in the tax area. Is it possible to successfully apply for waiver of at least part of the penalty resulting from the assessment of additional tax under these circumstances? Can the tax authority deny the waiver…
Ministry of Labour and Social Affairs plans further changes to employment of…
The Ministry of Labour and Social Affairs is planning stricter penalties for illegal work and disguised employment mediation. The absence of a prior (final and conclusive) penalty for these offences will now be a precondition for employing…
Amendment to VAT Act to narrow scope of exempt financial activities
The Ministry of Finance is proposing to significantly narrow the scope of financial activities exempt from VAT in a forthcoming amendment to the VAT Act. The aim is to align the Czech VAT Act with the EU Directive and the interpretations of the…