Taxes
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).
Coordination Committee: correction of tax base for bad debts – knowledge test
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors of the Czech Republic has finalised its discussion paper concerning the ‘knowledge test’, i.e. whether a creditor knew, should, or could have known at…
Another tax liberation package waives default interest on selected taxes and some…
The Ministry of Finance is waiving default interest on VAT and road tax for entities in selected sectors of industry, and default interest and interest on deferred tax amount where the deferment of tax payment or payment of tax in instalments was…
OECD guidance on the transfer pricing implications of the COVID-19 pandemic
The unique economic conditions arising from COVID-19 and government responses to it have resulted in challenges for the application of the arm’s length principle. To enhance tax certainty in the face of such challenges, the Organisation for Economic…
2021 tax package
The Chamber of Deputies has passed an amendment to the tax laws for 2021 (Print No. 910) in the third reading. The bill is now to be debated by the Senate. The most important changes that the tax package introduces to income tax are the abolition of…
Practical pitfalls of quick fixes
An amendment to the VAT Act implementing long-awaited changes to the intracommunity supply of goods (quick fixes) entered into effect on 1 September 2020. We may already comment on the first practical implications for taxpayers and on solutions to…
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…