Taxes
Legislative news in the area of employment
We present a summary of the most recent employment and social security legislation in connection with the coronavirus pandemic.
European Commission proposes deferring of DAC 6 deadlines and postponement of other…
In connection with the Coronavirus pandemic, the European Commission has approved a proposal deferring certain deadlines for exchange of information among Member States on certain cross-border tax planning arrangements under the DAC 6 Directive by…
Compensation bonus for members of limited liability companies with no employees or…
The government has passed an amendment to the Act on Compensation Bonuses, allowing them to be also paid to members of limited liability companies (‘s.r.o.s’) that have no employees and no more than two members, or members who belong to a single…
COVID-19 and intra-group services – a transfer pricing perspective
Implementing emergency plans, trying to keep a positive cash flow, or monitoring the quick succession of legislative changes adopted in connection with the coronavirus pandemic – these have become corporate management’s daily bread. Remuneration…
Government proposal to abolish immovable property acquisition tax goes to chamber of…
At its session on 30 April 2020, the government passed a proposal to abolish the tax on the acquisition of immovable property, with retrospective effect. Individuals will no longer have the option to deduct from their income tax base interest paid…
Amendment to VAT for 2021: e-commerce
From 2021, a special mini-one-stop-shop regime will also apply to the sale of goods by mail order. Under the new amendment, such sales will be taxed in the recipient’s country, potentially excepting small businesses. For harmonisation purposes, the…
Ministry of Finance introduces new old-age savings scheme
The Ministry of Finance has prepared a bill introducing a new old-age savings scheme, in form of a long-term investment account. The bill is part of the Czech Capital Market Development Concept for 2019-2023. The new product should work as an…
New call to participate in TREND
On 29 April 2020, the Technology Agency of the Czech Republic (TACR) announced the third call within the research and experimental development programme, focusing on the creation of research and development results and their use in one´s own…
Amendment to Tax Procedure Code revisited
The Chamber of Deputies did not pass any of the proposed versions of the amendment to the Tax Procedure Code; the bill thus fell through. Within a week, the Ministry of Finance came up with another bill, drawn up on the same layout as the original…
Waiver of VAT on the grounds of an extraordinary event
Value added tax on free delivery of goods and provision of services to selected entities is waived until the end of the state of emergency declared to fight the spread of the SARS-CoV-2 coronavirus provided that the goods and services serve to stop…
Postponement of advance payments on income tax on dependent activities and of…
The General Financial Directorate (GFD) has published a guideline allowing payers of personal income tax on dependent activities to apply for postponement of advance payments or for payment of the tax in instalments. Postponement (or payment in…
Impact of governmental measures on the application of double taxation treaties
In response to the extraordinary governmental measures adopted in the context of the COVID-19 pandemic (e.g. restriction of travel, quarantine), the OECD has released a recommendation to address certain tax implications of a temporary change of the…