News in Brief, September 2024

DOMESTIC NEWS
 

• Decree No. 250/2024 Coll. on the percentage share of individual municipalities in the national gross revenue from value added tax and income tax with effect from 1 September 2024 has been published in the Collection of Laws. 
• In the Collection of Laws, the Ministry of Finance has announced the forecast of the average gross monthly nominal wage in the national economy for 2025 (No. 251/2024).
• A list of contracting states applying the common reporting standard and decisive days and a list for the purpose of fulfilling the information obligation under Act No. 164/2013 Coll., on International Cooperation, have been published in Financial Bulletin No. 6/2024.
• In August, the government approved the National Action Plan for Clean Mobility (NAP CM). The strategic document focuses on the development of infrastructure for alternative fuels, the modernisation of the road transport fleet, and the decarbonisation of transport. The targets and plans set are broken down into milestones for 2025, 2030, and 2035.
• The government has approved a bill on the digital economy, preparing the Czech Republic for the adoption of the EU’s Digital Services Act and Digital Governance Act, which regulate the digital space in the EU, protect public debate from censorship, and introduce new rules to protect users from illegal content, among other things.
• The senate has referred back to the chamber of deputies an amendment to Act No. 253/2008 Coll., on certain measures against the legalisation of crime proceeds and the financing of terrorism and certain other regulations, with amending proposals.

The government has approved the following bills now pending discussion in the chamber of deputies:

• A bill amending Act No. 563/1991 Coll., on Accounting, Act No. 93/2009 Coll., on Auditors, and Act No. 416/2023 Coll., on Top-Up Taxes. More detailed information in this respect can be found in this issue of Tax and Legal Update.
• A bill amending certain laws concerning tax administration and the competence of the Customs Administration of the Czech Republic. More detailed information in this respect can be found in this issue of Tax and Legal Update.
• An amendment to the Labour Code whose main objective is to increase the flexibility of employment relations.
• An amendment to Act No. 164/2013 Coll., on International Cooperation in Tax Administration. The proposal mainly regulates the implementation of the EU directive on the reporting obligation with respect to crypto-assets (DAC 8).
• A comprehensive amendment to Act No. 150/2002 Coll., the Code of Civil Procedure, which aims to respond to the requirements of application practice after 20 years of the act's effectiveness.
• A new bill on the residence of foreign nationals.
• The Ministry of Finance has submitted a bill on the EU’s Carbon Border Adjustment Mechanism (CBAM) for comments. The bill mainly regulates the division of competences defined by the EU’s CBAM Regulation between the customs authorities and the Ministry of Finance.
• The government has approved a business package containing 22 measures aimed to reduce bureaucracy.
   

FOREIGN NEWS
 

• From October 2024, there will be a change in the allocation of preliminary rulings. Until now, the Court of Justice of the European Union itself has decided all cases. However, this will change, and the EU General Court will now rule on special areas such as the common VAT system, excise duties, the customs code and the tariff classification of goods in the combined nomenclature, and the trading system with greenhouse gas emission allowances.
• For more information, please see the summary of changes in direct taxes in the EU and internationally prepared by KPMG’s EU Tax Center, including updates on Pillar 2 legislative developments (Austria, Cyprus, UK, Turkey).