Taxes
Chamber of deputies acting under a state of legislative emergency
On 1 March 2020, a state of emergency was declared for 30 days. Along with other measures, the chamber of deputies approved the suspension of the electronic reporting of sales (ERS), deferments/waivers of social security and health insurance…
COVID-19: tax package
The government approved a package of liberating tax measures to mitigate the impact of coronavirus pandemic.
CNB’s measures and their implications
The Czech National Bank (CNB) has opted to decrease basic interest rates effective from 17 March 2020. From a tax perspective, the most important decrease is the lowering of the repo rate by 50 basis points to 1.75%. This rate is decisive for…
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: chain transactions and transport allocation
The Czech amendment to the VAT Act implementing quick fixes is still awaiting the second reading in the chamber. Its effectiveness is therefore being postponed once again. In the meantime, the European Commission has issued its explanatory notes on…
GFD publishes information on research and development allowances
In its information, the General Financial Directorate (GFD) comments on the amended regime for claiming research and development allowances, especially with respect to the new duty to notify the tax administrator of the intention to claim such an…
Employers’ perspective on plug-in hybrid vehicles
Until recently, Czech tax and labour-law legislation lacked any regulation of plug-in hybrid vehicles. If employers provided such vehicles to their employees for both business and private purposes, the determination of the employee’s non-monetary…
Benefit cards considered vouchers under VAT Act
At the Coordination Committee’s meeting, the Chamber of Tax Advisors agreed with the General Financial Directorate (GFD) on the VAT treatment of benefit cards. Benefit cards enable their holders to acquire pre-defined benefits from pre-defined…
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…
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…
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…
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…