Taxes
Consolidation package may negatively affect VAT on lease and resale of cars above…
The government's consolidation package limits the right to deduct VAT for passenger vehicles in category M1 with a purchase price of over CZK 2 million. This will have a negative impact on the lease of passenger cars with a purchase price above the…
Coordination Committee clarifies changes to VAT Act for real estate
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors of the Czech Republic has dealt with changes to the VAT Act in connection with new construction regulations. The changes will be effective from 1 January…
Can lessees claim deduction of import VAT?
The VAT Committee again considered the possibility for lessees to deduct import VAT if the lessee is also the person liable to pay import VAT. It reiterated that to exercise the right to deduct, it is necessary for the taxable person to have…
Simplifying rules for payment of insurance premiums for cross-border workers at home…
To avoid discrimination against cross-border workers, the European Commission has introduced a framework agreement that allows working from home (teleworking) from abroad to a larger extent without employers having to register and pay insurance…
What will the consolidation package entail? Updates and clarifications
The governing coalition has introduced several legislative changes with which it intends to increase state budget revenues. Below, we aim to update and clarify information on the imminent regulations resulting from the material approved by the…
Implementation of minimum tax in Czech Republic: Who will be affected by top-up tax?
A bill published by the Ministry of Finance introduces a top-up tax for taxable periods starting from 31 December 2023. The top-up tax with a rate equal to the difference between 15% and the specifically calculated effective tax rate will apply to…
Construction industry: changes to VAT from July
In connection with the amendment to the Construction Act, an amendment to the VAT Act changes the definition of family houses and apartment buildings, which will have a broader definition from 1 July 2023. Accordingly, the General Financial…
Consolidation package II: Changes to personal income tax and social security
Major changes in tax and social security and health insurance premiums are to affect not just companies, but also employees and workers. The abolition or reduction of personal income tax reliefs is being prepared, as well as changes in statutory…
Consolidation package I: Overview of main changes in taxation
Major changes in tax and social security and health insurance premiums are to affect not just companies, but also employees and workers. The abolition or reduction of personal income tax reliefs is being prepared, as well as changes in statutory…
New savings product for retirement: conditions for claiming tax relief
With effect from 2024, the Ministry of Finance proposes to extend tax-efficient retirement savings with a new form - a long-term investment product. It is an alternative to the current 3rd pillar of the pension system (comprising supplementary…
Italy: platform use in exchange for user data is barter; VAT base is the data’s value
The Italian tax administration has assessed additional output VAT to a platform on which users can register and use it free of charge. According to the tax administrator, this involves the provision of services for consideration, more precisely…
Legislative basis for global minimum tax
The date the global minimum tax will be introduced is approaching, and therefore the Czech implementation law is being prepared. The only legal act that has gone through the standard legislative process so far is an EU directive deriving from…