11 December 2018
Latest news - December 2018
Last month’s tax and legal news in a few sentences.
- A group of deputies submitted to the Chamber of Deputies a draft amendment to the Labour Code increasing the minimum vacation to 5 weeks per year. Presently, the basic vacation for employees in the business sphere is 4 weeks per year, which may be further expanded on a voluntary basis. Employees in the non-business sphere are presently provided 5 weeks of vacation per year, but without the possibility of further increases. The proposers of the amendment aim to eliminate this difference and unify the vacation entitlement for both spheres. Still, if the amendment is passed, a voluntary increase in vacation days will only be possible in the private (business) sphere. The draft amendment does not concern teaching and academic professionals at schools, for whom the Labour Code stipulates 8 weeks of vacation per year.
- From 1 January 2019, some rates of foreign per diem meal allowances will increase (Decree No. 254/2018).
- Information on the practical application of Article 11 of the Treaty between the Czech Republic and Chile on Preventing Double Taxation and Tax Evasion in the Area of Income and Wealth Tax (Collection of International Treaties No. 5/2017), and the List of Countries Exchanging Country by Country Reports under Section 13zb(2) of Act No. 164/2013 Coll., on International Cooperation in Tax Administration and Changes to Related Regulations, as amended, were published in the Ministry of Finance CR Financial Bulletin No. 10/2018.
- The Chamber of Deputies passed an amendment to the Act on Money Changing Activities aiming to prevent unfair practices of some exchange offices, mostly located in the centre of Prague, when dealing with foreign tourists.
- The financial administration reminds VAT payers of rules of the VAT treatment of members of companies. Under the new legislation, each member in a company shall proceed on an individual basis, following the general provisions of the VAT Act.
- The General Financial Directorate published new printed forms for payers of tax on dependent activity, which have changed. Other printed forms for 2018 remain unchanged.
- Starting next year, the Financial Administration will offer a new option to pay administrative fees – by a card via terminals located in the buildings of the tax authorities’ territorial branches. Taxpayers submitting filings that are subject to a fee will now be able to pay the fees by card. Also, the financial administration’s executors will accept bank cards to settle underpayments, offering a quick and efficient way for tax debtors to clear their debts (often caused by negligence) when dealing with the executors.
- The Chamber of Deputies passed an amendment to the VAT Act proposed by deputies, which is now to be debated in the Senate. If passed, it will change the VAT rate for train, bus and ferry fares to 10% (from the present 15%).
- An updated overview of valid double taxation treaties concluded by the Czech Republic in the area of income tax and tax on income and wealth was published on the Ministry of Finance’s website.