Taxes
Transfer pricing - comparability analysis in times of COVID-19
The unprecedented changes in the economic environment following the outbreak of COVID-19 have created unique challenges for setting prices in intra-group transactions. The correct setting or verification of transfer prices for the past year while…
Deductibility of interest on mortgage loans after 1 January 2021
On 1 January 2021, an amendment to the Income Tax Act entered into effect, reducing the annual limit of interest paid on mortgage loans or building savings loans to be deducted from the tax base from CZK 300 thousand to CZK 150 thousand. Uncertainty…
GFD’s Information on ATAD
The General Financial Directorate (GFD) issued its Information on Measures Arising from the Implementation of the Anti-Tax Avoidance Directive (ATAD), clarifying certain practical issues associated with the restricted deductibility of excess…
Financial administration’s response to queries regarding changes to tax depreciation
Extraordinary tax depreciation, adjusted limits for acquisition costs of tangible fixed assets or the cancellation of the intangible asset category are some of the most significant changes introduced by the January amendment to the Income Tax Act.…
2021 amendment to VAT Act introduces deemed supplier concept
The VAT position of electronic interface operators will change dramatically from 1 July 2021. In connection with a planned amendment to the VAT Act relating to e-commerce, individual e-shops ensuring the sale of goods from foreign suppliers will…
Amendment to VAT Act for 2021: Simplification not only for e-shops?
Are you offering your goods via e-shops? Shipping low-value consignments directly to end users also from countries outside the EU? Organising training seminars, concerts, trade fairs or sports events across the EU? Be on the alert and prepare…
When does entitlement to VAT deduction arise on provision of export insurance?
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors have discussed the entitlement to VAT deduction on insurance provided in connection with the export of goods to a third country. A few situations that…
Waiver of VAT on COVID-19 vaccines, tests, and respirators
The Minister of Finance has decided to waive VAT on supplies of in-vitro diagnostic medical devices for COVID-19 testing and COVID-19 vaccinations. The decision shall be in effect from 16 December 2020 to 31 December 2022 and has been published in…
What’s new in tax for employers and employees in 2021?
The most crucial changes undoubtedly are the abolition of the super-gross wage and the solidarity tax surcharge and the introduction of progressive taxation using two rates, 15% and 23%, the second one applicable to income exceeding the set…
New Year with the new Tax Procedure Code!
The amendment is relatively extensive, thus affecting the lives of all taxpayers. The main areas concern: the possibilities for using tax information mailboxes; changes in deadlines for filing tax returns; a revision of the sanction and penalty…
VAT on the lease of real estate
On 1 January 2021, a provision of the VAT Act restricting the option to tax leases of selected real estate entered into effect. At the end of 2020, the General Financial Directorate (GFD) issued information to ensure a better understanding of the…
The GFD issues additional information on reporting under DAC 6
The General Financial Directorate (GFD) has published a list of questions and answers on the new obligation to report cross-border arrangements (DAC 6 reporting).