Taxes
GFD clarifies procedure regarding VAT waiver for electricity and gas
According to the General Financial Directorate (GFD), the waiver of VAT shall apply to electricity intended for any purpose. As for gas, the waiver shall apply both to supplies through the distribution system, and to tankers and cylinders. The GFD…
Deputies do not approve digital tax
In the just-ended parliamentary term, the Czech Chamber of Deputies did not approve the bill on a digital service tax. Hence the bill would have to go through the entire legislative process again should the new government want to introduce a digital…
VAT on electricity and gas supplies to be waived
Based on Wednesday’s decision by the Minister of Finance, VAT on supplies of electricity and gas, their acquisition from another EU member state, and their imports is to be waived. The waiver shall apply to all supplies with the date of taxable…
Implementation of DAC 7 in Czech legislation
DAC 7 introduces a new reporting obligation for operators of platforms – software allowing sellers and users to connect. The Ministry of Finance has prepared a bill to implement the directive, which is currently going through the comment procedure.…
New income tax credit
Recently published in the Collection of Laws, an extensive amendment to the Enforcement Procedure Code and Civil Procedure Code among other things contains an amendment to the Income Tax Act introducing a new income tax credit for taxpayers in the…
Transfer pricing remains under tax administrators’ scrutiny
The financial administration has published information about its tax inspections focusing on transfer prices between related parties. In 2020, tax administrators carried out 249 inspections, assessing additional corporate income tax of CZK 1.4…
New tax credit amounts per second and third child in 2021 taxable period
An amendment to the Income Tax Act, which is part of the amendment to the Act on State Social Aid and introduces a higher annual tax credit per second, third and any subsequent child while simultaneously abolishing the maximum monthly tax bonus…
Amendment to VAT Act 2021: EU directive’s direct effect applicable in majority of e…
An e-commerce amendment to the EU VAT Directive has been in effect since 1 July 2021. Unfortunately, the Czech Republic has not yet implemented it: the relevant amendment to the Czech VAT Act is still awaiting approval by the Senate. In its recently…
Digital services tax approval on the horizon
After more than a one-year break, the government's bill on digital services tax has moved on to the next phase of the legislative process. The final third reading in the Chamber of Deputies, which will also vote on all motions to amend the bill made…
Time test for tax exemption upon spouses’ community property settlements
The Coordination Committee of the General Financial Directorate (GFD) and the Chamber of Tax Advisers confirmed that the time test for the tax exemption of income from the sale of shares (ownership interests in a business corporation) shall not be…
Financial administration again answers questions about changes to tax depreciation
Even after months of the Income Tax Act’s amendment’s validity, the retroactive effect of the changes to tax depreciation has still not been fully clarified. For the third time, the financial administration has again updated the Q&A file on its…
GFD explains new meal allowance rules
From 1 January 2021, employers may use a new form of meal contribution under the amendment to the Income Tax Act: the monetary meal allowance. The General Financial Directorate (GFD) issued information that answers some of the questions raised by…