Taxes
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…
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…
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…
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…
Supply of energies at capped prices: clarification of VAT treatment
Compensation for the supply of electricity and gas at capped prices constitutes a consideration received from a third party, on which the electricity or gas suppliers must pay VAT. The Ministry of Finance expressed this opinion following the…
Changing obligations of accommodation providers
The General Financial Directorate has issued updated information on the tax assessment of the obligations of accommodation service providers. The information responds to legislative changes in effect from January 2023 concerning value added tax,…
Windfall tax: practical information on application
The financial administration has published answers to questions about the windfall tax, which is to be applied from 2023 to 2025. Below we summarise the most important conclusions.
Teleworking between Czech Republic and Germany or Austria: changes in insurance…
The Czech Republic has concluded framework agreements with Germany and Austria concerning persons working remotely in the other country, i.e., teleworking. Both agreements are effective from 1 March 2023 and respond to current trends in working from…
Russia on the list on non-cooperative jurisdictions: tax implications for Czech…
With effect from 21 February 2023, the Council of the EU extended the list of non-cooperative jurisdictions for tax purposes to include the British Virgin Islands, Costa Rica, the Marshall Islands, and Russia. For the first time, this may have wider…
Energy price capping: compensation subject to VAT?
In February, the government approved an amendment to the government decree on compensation paid to suppliers for the delivery of electricity and gas at fixed prices, which was supposed to clarify whether this compensation is subject to VAT. The…
What will global minimum effective tax do to Czech companies?
The finalisation of the global minimum effective tax regulation is progressing at the OECD and EU levels in parallel. There is a general consensus on the introduction of a 15% tax. EU member states are obligated to adopt the relevant legislation as…