Taxes

Brexit: What will happen to social security and health insurance in 2021?

The end of 2020 will also bring the end of the transition period under the Agreement on the Withdrawal of the UK from the EU. During the transition period between 1 February 2020 and 31 December 2020, the United Kingdom is being treated as if it…

Tax liberation package extended to retail and provision of services in business…

The Ministry of Finance adopted another tax liberation package, extending the waiver of road tax and income tax prepayments and VAT-related default interest to entrepreneurs operating in retail and the sale and provision of services that had to…

Compensation bonus for the self-employed and small limited liability company members…

On 16 October 2020, the government approved a bill on compensation bonuses for entrepreneurs predominantly operating their business within closed segments of the economy. The bill proposes a compensation bonus of CZK 500 for every calendar day of…

Tax liberation package waives selected prepayments

The Ministry of Finance adopted another tax liberation package, postponing selected tax duties of entrepreneurs most affected by the government’s latest emergency measures by waiving road tax and income tax prepayments and VAT-related default…

Changes to tax depreciation to support investment

Among other things, the government intends to reboot the economy with measures relating to corporate income tax, proposing a reduction of the tax depreciation periods for a selected group of tangible fixed assets, an increase of the limit for…

Reporting under DAC 6 postponed in the Czech Republic and other EU member states

The Czech Republic has utilised the option to postpone reporting duties arising from DAC 6 until the first months of 2021, as made possible by the COVID-19 DAC amendment adopted in response to the COVID-19 pandemic. Notably, some EU member states…

Czech digital tax: when and in what form to expect it

A proposal for the introduction of a digital tax has been before the chamber of deputies for several months now. The originally proposed effectiveness from mid-2020 has come and gone. The introduction of this tax is currently being debated again.

Coordination Committee: When can the sale of real property be treated as losing…

The Czech Chamber of Tax Advisors submitted a paper for discussion to the Coordination Committee of the General Financial Directorate (GFD) and the Chamber of Tax Advisors dealing with when, from a VAT perspective, a transaction can be treated as a…

Czech Republic implements MLI into double taxation treaties

The Czech Republic has joined the states that have deposited their instruments of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI, short for multilateral…

First change to new investment incentive criteria

In response to the coronavirus pandemic, the Ministry of Industry and Trade has submitted an amendment to the Government Decree on Investment Incentives aiming to provide more substantial support for investments involving selected strategic products…

Immovable property acquisition tax – to pay or not to pay?

The bill to abolish the immovable property acquisition tax is currently going through the legislative process. The Ministry of Finance had expected it to pass smoothly and become valid by the end of 2020. The related extraordinary measure of June…

Who will benefit from abolition of super-gross wage?

The government has decided to proceed with the long-promised abolition of the super-gross wage, while at the same time introducing the progression of personal income tax. The Chamber of Deputies is currently debating an amendment to tax laws, which…