Taxes
Changes to R&D allowances already in legislative process
A working group consisting of representatives of business federations and associations, the Ministry of Finance and the General Financial Directorate has agreed on changes to the R&D allowance. These have recently been passed as part of the tax…
Chamber of Deputies passes tax package – highlights
Just before the holidays, the Chamber of Deputies passed the so-called tax package (Print No. 206). The draft amendment still needs to be discussed by the Senate in January. Below, we draw attention to some changes in personal income tax and VAT.
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.
Subsidy opportunities for entrepreneurs in 2019
The time schedules for calls planned in 2019 within subsidy programmes have been published. Below we provide a short overview.
GFD: Assessing transfer prices and determining a permanent establishment’s tax base,…
In November, the General Financial Directorate published new Instruction D – 32, dealing with a binding assessment of the manner in which the price agreed between related parties and the tax base of a tax non-resident relating to activities…
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…