Taxes
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…
Draft amendment to tax laws to increase public budget revenues
The Ministry of Finance disclosed a draft amendment to tax laws for 2020, aimed at increasing revenues for public budgets. Changes will primarily affect insurance companies that will have to additionally tax, on a one-off basis, the difference…
Czech reporting of cross-border transactions
The Ministry of Finance has submitted a draft amendment to tax legislation for 2020 for comments. The amendment includes, among other things, the implementation of DAC 6 and the introduction of reporting duties relating to selected cross-border…
Last call to participate in Employment Operational Programme: support for employee…
On 15 March 2019, the Ministry of Labour and Social Affairs announced a new call to participate in a programme supporting the professional education of employees relating to IT, languages, soft skills, and professional skills. This call is likely to…
Changes to income tax after 2019 amendment
The long-awaited tax package entered into effect on 1 April. Legal entities will primarily have to cope with changes to withholding tax, borrowing costs and cross-border transactions; individuals, on the other hand, will mostly be affected by…