Taxes
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…
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…
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.
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…
Amendment to VAT Act 2024: reporting obligation for payment service providers
According to the upcoming amendment to the VAT Act, a new reporting obligation for payment service providers regarding payments abroad will apply from 1 January 2024. The draft amendment is currently awaiting its first reading in the chamber of…
News on tax obligations of transport service providers
The General Financial Directorate (GFD) has published Information summarising tax obligations in terms of VAT, personal income tax, and road tax for entities providing passenger transport through mobile applications (e.g. Uber, Bolt or Liftago). It…
GFD Instruction D-59 from corporate income tax perspective
GFD Instruction D-59 replacing existing Instruction D-22 mainly brings clarifications resulting from the conclusions of available case law and coordination committees from recent years. Pertaining to corporate income tax, however, the instruction…
What’s new in tax for employees in 2023?
With the new year come changes in employee taxation as well as social security and health insurance. The maximum assessment base for social security contributions has increased and the limit from which wages are taxed at 23% has been raised. Many…