Taxes
2019 amendment to the VAT Act: What changes may the amending proposals bring?
An amendment to the VAT Act, with planned effectiveness during the course of 2019, has recently passed through the second reading in the Chamber of Deputies. Below we present a number of submitted amending proposals.
Seven tax news items for employers and employees in 2019
The maximum assessment base for social insurance and the minimum wage will increase, which will also affect other mandatory payments and tax credits. The waiting period, i.e. the first three days of a temporary inability to work during which…
Courts clarify conditions for awarding interest on tax administrator’s wrongful…
Winning a dispute with the tax authority may be compensated by interest awarded on the grounds of the tax administrator’s unlawful conduct. Its amount equals the Czech National Bank’s repo rate plus 14 percentage points, which means that it…
Ministry of Finance prepares legal tool regulating tax relations with Taiwan
For an external comment procedure, the Ministry of Finance has submitted a bill to prevent double taxation in relation to Taiwan. As the Czech Republic does not recognise Taiwan as an independent state, it is not possible to enter into a double…
Stricter criteria for granting investment incentives
Following discussions regarding the future of investment incentives, the government plans to use this important investment tool to respond to the actual needs and priorities of the Czech Republic and focus on projects with a higher added value. In…
TRIO programme accepting applications within the fourth call
The Ministry of Industry and Trade announced the fourth call to participate in the TRIO subsidy programme, focusing on support of operating expenses for industrial research and experimental development projects. Compared with the previous calls, the…
2019 amendment to VAT Act: changes to original wording
The 2019 amendment to the VAT Act, discussed in the previous issues of our Tax and Legal Update, has undergone a number of first changes, including, e.g., a change in the General Financial Directorate’s approach to the adjustment of VAT relating to…
New double taxation treaty with Korea introducing substantial changes
In Seoul in January 2018, the Czech Republic and Korea signed a double taxation treaty, replacing a document from 1992 no longer meeting current tax and economic requirements. Among other things, the new treaty changes the taxation of paid dividends…
Services received – how to prove their tax deductibility?
Do you receive services from intracompany or external providers whose actual substance is uncertain or whose benefit for your company is doubtful? The tax authority may no longer regard the mere provision of such a service’s tax document as…
2019 VAT Act amendment: Do you issue, distribute or accept vouchers? Will you know…
The final part of our VAT news tetralogy focuses on vouchers and related changes in tax calculation methods.
Research and development allowance revisited
Late in June 2018, the Council for Research, Development and Innovations adopted a proposal for measures aiming to eliminate companies’ uncertainties when claiming R&D allowances. The new conditions have been agreed on by a working group comprising…
2019 VAT amendment: Are limited liability company statutory representatives VAT…
In the third article on the most important changes in VAT effective from 2019, we provide answers to the above questions.