Tax & Legal Update
Compensation bonus for members of limited liability companies with no employees or…
The government has passed an amendment to the Act on Compensation Bonuses, allowing them to be also paid to members of limited liability companies (‘s.r.o.s’) that have no employees and no more than two members, or members who belong to a single…
COVID-19 and intra-group services – a transfer pricing perspective
Implementing emergency plans, trying to keep a positive cash flow, or monitoring the quick succession of legislative changes adopted in connection with the coronavirus pandemic – these have become corporate management’s daily bread. Remuneration…
Government proposal to abolish immovable property acquisition tax goes to chamber of…
At its session on 30 April 2020, the government passed a proposal to abolish the tax on the acquisition of immovable property, with retrospective effect. Individuals will no longer have the option to deduct from their income tax base interest paid…
Posting of workers from a VAT perspective
In practice, companies often do not pay enough attention to the possible implications of posting high-ranking managers to the Czech Republic to manage or supervise another group entity. A number of these arrangements meet the definition of a VAT…
CJEU dealt with assigning of transport in a Czech case
In a Czech case (Herst), the Court of Justice of the EU (CJEU) dealt with assigning intra-Community transport to a transaction in a situation where transportation was arranged by the last entity in a chain, and goods were purchased and resold…
Amendment to Civil Code abolishes pre-emptive right
In April 2020, an amendment to the Civil Code that may significantly enhance the liquidity of residential units was published in the Collection of Laws. Although a drop in real property prices is expected in connection with the COVID-19 outbreak,…
Permits to mediate employment complicate employment of foreign nationals
Last year’s amendment to the Act on the Residence of Foreign Nationals forbids foreigners with employee cards to change their employers if these are employment agencies, i.e. entities holding a licence for the mediation of employment. These involve…
Will tax administrators have to file taxpayers’ financial statements in the…
At the end of January, a group of deputies submitted a draft amendment to the Act on Public Registers that introduces the duty of tax administrators to file on behalf of individuals and corporate entities recorded in public registers their ordinary,…
Amendment to VAT for 2021: e-commerce
From 2021, a special mini-one-stop-shop regime will also apply to the sale of goods by mail order. Under the new amendment, such sales will be taxed in the recipient’s country, potentially excepting small businesses. For harmonisation purposes, the…
SAC: proof of tax fraud not sufficient to deny entitlement to VAT deduction
Yet again, the Supreme Administrative Court (SAC) has dealt with a VAT fraud issue, in particular debating under what circumstances it may be concluded that a taxable supply recipient was or should and could have been aware of their involvement in…
New duty to provide information on tourism services
Within the measures adopted in response to the COVID-19 pandemic, legislators have passed a legal amendment introducing the duty for tourism services intermediaries (typically Airbnb and similar platforms) to provide information on these services to…
Ministry of Finance introduces new old-age savings scheme
The Ministry of Finance has prepared a bill introducing a new old-age savings scheme, in form of a long-term investment account. The bill is part of the Czech Capital Market Development Concept for 2019-2023. The new product should work as an…