Taxes
Watch out for tax inspections! Companies drawing investment incentives surprised by…
Apart from loss-making companies, tax administrators now systematically target transfer pricing in profit-making companies that draw investment incentives.
New Instruction D-34 and translation of TP Guidelines
The financial administration is unifying procedures to determine tax bases affected by transactions between associated enterprises, both domestic and cross-border.
VAT treatment of members of societies finally clarified?
In its May and June sessions, the Coordination Committee commented on the tax treatment of members of societies (former associations) without legal personality. A presentation from the side of the tax advisors dealt with the VAT treatment when…
Are you ready for changes in the VAT ledger statement?
With the recent amendment to the VAT Act, the revised Instruction on Completing the VAT Ledger Statement entered into effect on 1 April 2019. Its most significant changes concern corrections to the tax base for irrecoverable debt. What to watch out…
Amendment to Investment Incentives Act passed by Chamber of Deputies
The new Investment Incentives Act reflects structural changes taking place in the economy since its last amendment in 2015. It introduces several modifications significantly affecting the process of awarding investment incentives: for instance,…
Rate package to tax one-crown bonds
The government has passed a so called rate package aiming to boost public budget revenues. Some points were added to the finance ministry’s original bill, in particular the taxation of one-crown bonds. The proposed taxation of insurers’ technical…
GFD admits a looser interpretation of transitional provisions on R&D allowance
The General Financial Directorate (GFD) published information on the application of transitional provisions of the tax package that entered into effect on 1 April 2019. It mainly concerns research and development allowances and regulates the…
TACR announcing TREND support programme, project applications accepted until 11 July
On 15 May 2019, the Technology Agency of the Czech Republic (TACR) announced the first call under the TREND programme supporting industrial research and experimental development. This is an opportunity mainly for projects focusing on the development…
Pitfalls of quick fixes: proving transport and chain transactions
In the May issue of Tax and Legal Update, we covered the first two changes arising from the draft 2020 amendment to the VAT Act. The amendment also contains important changes as regards proving transport to another member state and chain…
2019 VAT amendment: treatment of meal vouchers
In the March issue of Tax and Legal Update, we looked into whether meal vouchers meet the definition of a voucher for VAT purposes. The question of how to treat meal vouchers following the implementation of the Vouchers Directive in the amended VAT…
Major changes to tax procedure rules ahead
The Ministry of Finance has released for intra-departmental comments an extensive amendment to the Tax Procedure Code. Its impressive 130 points will affect many old ways. For instance, the ministry proposes to change the system of charging interest…
Quick fixes to introduce significant changes in 2020
A draft amendment to the VAT Act for 2020 introduces significant changes for consignment stock arrangements and intra-community transactions with goods. These quick fixes are aimed at harmonising the rules for the delivery of goods among the EU…