Taxes
Amendment to Tax Procedure Code heading to the Senate – summary of major changes
An amendment to the Tax Procedure Code has passed the Czech Chamber of Deputies in its third reading. According to the Minister of Finance, the amendment will allow for the implementation of an online tax authority, formed on the ground plan of a…
Quick fixes: GFD information and amendment to EC explanatory notes
The Czech amendment to the VAT Act implementing quick fixes is still waiting for its second reading in the Chamber of Deputies. At the end of January, the General Financial Directorate disclosed information confirming the option of invoking the EU…
Government (not) approving investment incentives
Three applicants for investment incentives were denied financial support to acquire fixed assets by the government. Applications for the support of strategic investment projects were submitted by investors under the previous legislative regime. Aid…
VAT on fuel cards to be affected by CJEU case law
Fuel card transactions are operated all across the EU. Therefore, some new measures being implemented in just some of the member states might be problematic. Hence, most EU states are still reluctant to apply the Court of Justice of the EU’s…
Transfer prices targeted by auditors
January is traditionally a month in which KPMG’s tax department becomes involved in the examination of the financial statements of its audit clients, as transfer pricing may be associated with significant tax risks. Our audit teams assess these…
Ministry of Finance income tax plan for 2021
2020 has just begun, but two new amendments to the Income Tax Act for 2021 are already being discussed. The ministry is planning to introduce a lump-sum tax for selected individuals, monetary contributions for employee meals and the cancellation of…
VAT: Correction of tax base for irrecoverable debts in detail
The amended wording of the VAT Act effective from 1 April 2019 introduced significant changes concerning corrections of the tax base in respect of irrecoverable receivables. The General Financial Directorate (GFD) has now published detailed…
GFD information on transfer of heat and cold to 10% VAT rate
In its information effective from 1 January 2020, the General Financial Directorate (GFD) draws attention to the rules of determining the date of supply for the delivery of heat and cold. It provides examples how to technically solve the settlement…
Double taxation treaty with Korea in effect from January
A new double taxation treaty, which entered into force at the end of 2019, replaces the original document from 1992. Concerning tax withheld at the source, it applies already to income paid or credited at 1 January 2020, hence requiring a very rapid…
Tax rate package published in Collection of Laws on New Year’s Eve
Just before Christmas, the Chamber of Deputies overruled the Senate and passed the original version of the tax rate package, which was then published on 31 December 2019 under No. 364/2019 and amends certain tax laws in connection with a plan to…
Amendment to VAT Act for 2020: EC explains call-off stock arrangements
At its January session, the deputies’ chamber will discuss the amendment to the VAT Act introducing quick fixes in its second reading. Most neighbouring countries managed to implement the quick fixes before 1 January 2020. At the end of December…
New environmental challenges for businesses
At the end of 2019, the Ministry of Industry and Trade announced another wave of calls within the Enterprise and Innovation for Competitiveness Operational Programme (OPPIK) focusing on energy savings and the efficient use of energy. The new…