News in brief, September 2020

Last month’s tax and legal news in a few sentences.

DOMESTIC NEWS IN BRIEF

  • We draw attention to the effectiveness of an amendment to the VAT Act implementing quick fixes relating to cross-border supplies of goods and consignment (call-off) stock arrangements. The amendment was promulgated in the Collection of Laws on 14 August 2020 and entered into effect on 1 September 2020.
  • Financial Bulletin 11 and 12 disclose communications on the Czech Republic-Ireland treaty to prevent double taxation and tax evasion relating to income and property taxes following the multilateral convention to implement tax treaty-related measures to prevent base erosion and profit shifting.
  • Following the effectiveness of the multilateral convention to implement tax treaty-related measures to prevent base erosion and profit shifting for the Czech Republic’s tax treaties from 1 September 2020, the Ministry of Finance communicates that the multilateral convention applies to double taxation treaties with the following countries: Australia, Belgium, Denmark, Finland, France, Georgia, Island, India, Ireland, Israel, Japan, Canada, Cyprus, Lichtenstein, Lithuania, Latvia, Luxembourg, Malta, the Netherlands, Norway, New Zealand, Poland, Portugal, Austria, Russia, Singapore, Slovakia, Slovenia, Serbia, Sweden, Switzerland, and the United Kingdom.
  • The government has approved the draft measures arising from the Czech Capital Market Development Concept for 2019 – 2023. Major novelties include, among other things, the introduction of a long-term investment account and an alternative participation fund. The draft also includes measures aimed to enhance the protection of investors and strengthen tools against fraudulent bonds.
  • Act No. 343/2020 Coll., amending the Act on International Cooperation in Tax Matters and introducing a new reporting duty relating to cross-border arrangements (DAC6), has been published in the Collection of Laws. In relation to DAC 6, the act entered into effect on 29 August 2020. In response to the COVID-19 pandemic, the Council of the EU adopted a COVID-19-related amendment to the Directive on Administrative Cooperation which, among other things, postpones the deadlines for meeting reporting duties under DAC6 by ca. six months. As stated in Information on the Exchange of Information under DAC6 of 17 June 2020, the Ministry of Finance supplemented an amendment to tax legislation (Act No. 299/2020 Coll.) with an enabling clause based on which the government may implement the above postponement of deadlines via a decree. The government decree postponing the deadlines for fulfilling the reporting duties under DAC6 was approved on 7 September 2020 and is expected to become effective during the course of September 2020 depending on its promulgation in the Collection of Laws. 

FOREIGN NEWS IN BRIEF

  • The Council of the EU adopted new rules for applying excise duties on alcohol effective from 2022. The new rules are included in Council Directive (EU) 2020/1151 amending Directive 92/83/EEC on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages.
  • The European Commission issued its first report on the implementation of ATAD in individual member states.
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