Tax and Legal Update
News in Brief, November 2022
Last month’s tax and legal news in a few sentences.
1 November 2022 In brief
- A decree containing new prescribed forms for submissions for 2023 has been published in the Collection of Laws (under No. 312/2022 Coll.).
- The financial administration informs that the Viewing Selected Data service, which allows access to selected information from personal tax accounts and the taxable entity's file maintained by the tax authority, will be terminated on 30 November 2022.
- A new reporting obligation for sharing economy platform operators starts in January 2023. This is the reporting obligation under the DAC7.
- The government has approved a proposal to negotiate a treaty between the Czech Republic and the United Arab Emirates on the avoidance of double taxation in the field of income taxes and on the prevention of tax evasion and avoidance.
- A communication on the treaty between the Czech Republic and the Republic of South Africa for the avoidance of double taxation and prevention of tax evasion in the field of income taxes in relation to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting has been published in Financial Bulletin 13/2022.
- Based on the government decree on the general assessment base for 2021, the conversion coefﬁcient for adjusting the general assessment base for 2021, the reduction thresholds for determining the calculation base for 2023, the basic pension assessment level set for 2023 and the pension increase in 2023 (see the Collection of Laws and International Treaties), the average wage for the following year is CZK 40,324. The maximum monthly and annual limit for participation in sickness insurance are CZK 161,296 and CZK 1,935,552, respectively.
- The EU Council has agreed to move Anguilla, the Bahamas, and Turks and Caicos Islands from the grey list to the black list of non-cooperative jurisdictions. Following the latest revision, the following 12 countries are considered non-cooperative jurisdictions: American Samoa, Anguilla, Bahamas, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, Turks and Caicos Islands, US Virgin Islands, and Vanuatu.
- The EU Council Regulation on Emergency Intervention to Address High Energy Prices was published in the Official Journal of the EU on 7 October and entered into force the following day.
- The European Commission has asked the public for feedback on policy proposals for a new corporate tax system called "Business in Europe: Framework for Income Taxation (BEFIT)". This initiative would provide common rules for determining the corporate income tax base for EU-based entities that are part of a corporate group with global consolidated income above a certain threshold. BEFIT would also include provisions for the redistribution of profits to member states based on a predeﬁned formula. After redistribution, profits would be subject to the corporate income tax rate of the relevant member state. The deadline for providing comments is 5 January 2023. The draft rules are expected to be adopted by the Commission in the third quarter of 2023.
- The OECD has issued updated guidance on BEPS 13 (Country-by-Country Reporting), aiming to ensure consistent implementation and provide certainty for tax administrations and taxpayers. The key updates relate to the reporting of information on permanent establishments and the treatment of short and long accounting periods.
- The OECD has issued a report calling for the revision of the rules for providing tax incentives in the light of the OECD's Pillar II (minimum effective tax of 15%). The report identifies several aspects that countries should consider when preparing for Pillar II. The report in particular looks at the current use of tax incentives, analyses key provisions of the Global Anti-Base Erosion (GloBE) rules, and shows how different types of tax incentives may affect the effective tax rate. For more information, please see here.
- The OECD has issued another document for public consultation, which concerns tax administration and legal certainty regarding Amount A intended to be taxed in the market country under the OECD's Pillar I.
Lenka Fialková email@example.com +420 222 123 536
Václav Baňka firstname.lastname@example.org +420 222 123 505
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