24 News in Brief, March 2024

DOMESTIC NEWS

• Government Decree No. 17/2024, amending the previous Decree No. 463/2022 Coll., on the determination of prices of electricity and gas supplied in an extraordinary market situation for losses in distribution and on compensation of losses provided for the supply of electricity and gas at fixed prices, has been published in the Collection of Laws.
• Amendment to Government Decree No. 36/2023 Coll., on the format and template of submissions using prescribed forms for the levy on surplus market revenues, has been issued under No. 18/2024.
• On 1 April 2024, the Motor Third Party Insurance Act including its accompanying law will come into effect. The new regulation responds to the relevant EU Directive and introduces key changes to the legal framework relating to third party liability insurance (No. 30/2024 and 31/2024 Coll.).
• The following regulations have been published in the Collection of Laws: amendment to Decree No. 480/2020 Coll., on the use of roads subject to time-based tolls (under No. 35/2024); Government Decree No. 40/2024 amending Decree No. 240/2014 Coll, on time-based tolls, toll rates, toll discounts and the procedure for applying toll discounts; and amendment to Decree No. 470/2012 Coll., on the use of toll roads (under No. 41/2024).
• A bill on investment companies and investment funds is heading to its third reading. The main proposed measures are the regulation of unlicensed managers and some minor areas where the market or the CNB requires clarification. The bill also includes an amendment to the Income Tax Act and some other laws (see separate article).
• The draft amendment to the Company Conversions Act will be discussed by the chamber of deputies in its third reading. The main objective is to incorporate into Czech law Directive (EU) 2019/2121 of 27 November 2019 amending Directive (EU) 2017/1132 as regards cross-border transfers of registered offices, mergers, and divisions. The draft also removes certain other changes in response to practical experience with company conversions and includes a minor amendment to the Income Tax Act.
• The current list of countries on the EU list of non-cooperative jurisdictions for tax purposes, approved by the EU Council, has been published in Financial Bulletin 3/2024.
• On 20 February 2024, a treaty between the Czech Republic and Montenegro on the avoidance of double taxation in the field of income taxes was signed in Podgorica, with the expected effectiveness from the beginning of 2025. After that, the existing treaty between the Czech Republic, Serbia and Montenegro will cease to apply to Montenegro.
   

FOREIGN NEWS

• In February, several member states (the Czech Republic and, e.g., Ireland, Germany, Poland) released their reasoned opinions on the BEFIT proposal and expressed their concerns. The Czech Republic's position versed by the senate argues, among other things, that BEFIT will increase the administrative burden on public administrations and businesses and interfere with the member states' competence in direct taxation. Other member states have voiced similar concerns.
• The General Affairs Council has decided to remove the Bahamas and the Turks and Caicos Islands from the EU's list of non-cooperative jurisdictions for tax purposes. Following this latest revision, the list now includes the following twelve jurisdictions: American Samoa, Anguilla, Antigua and Barbuda, Fiji, Guam, Palau, Panama, the Russian Federation, Samoa, Trinidad and Tobago, the US Virgin Islands, and Vanuatu.