News in Brief, October 2024

DOMESTIC NEWS

• The Ministry of Finance is reminding drivers that according to the Act on Motor Third Party Liability Insurance, including the accompanying law, which came into effect on 1 April 2024, green cards for proving motor third party liability insurance in the territory of the Czech Republic have been abolished as of 1 October 2024 and replaced by online insurance registration. This will make checks possible in the Czech Republic without having to stop vehicles. Green cards will still be required for travel abroad.
• An amendment to the Act on Insolvency and Methods of its Resolution (No. 252/2024 Coll.) has been published in the Collection of Laws to make the debt discharge process more efficient and increase creditor protection. The changes include, e.g., extending the period for repeated debt discharge from 10 to 12 years and mandatory cooperation between credit providers and employers. The amendment became effective on 1 October 2024.
• Another amendment to the AML Act (253/2008 Coll.) has been published in the Collection of Laws, with effective date of 30 December 2024. The changes concern in particular providers of services related to virtual assets, which have now been classified as financial institutions. It also introduces the obligation to identify clients represented by lawyers and notaries, and other obligations to strengthen the supervision by the Financial Analytical Office.
• The government's regulation on the coefficient for calculating the minimum wage in 2025 and 2026 seeks to ensure that the minimum wage better reflects economic conditions and average wage growth. The regulation has been published under No. 285/2024 Coll.
• The Ministry of Labour and Social Affairs has published Notice 286/2024 Coll., announcing the minimum wage, the lowest levels of the guaranteed salary, and the range of extra pay for working in a difficult work environment for 2025. The minimum wage will be CZK 20,800.
  
   

FOREIGN NEWS

• The OECD has published a Model Competent Authority Agreement (MCAA) for applying the simplified approach for calculating Amount B under Pillar 1. This practical tool is designed to be particularly beneficial for developing countries. It will allow them to use simplified approaches to set market prices for baseline marketing and distribution activities provided in their territory. The aim is to increase certainty for tax administrations and taxpayers and reduce potential disputes.
• For more information, see the summary of changes in direct taxes in the EU and internationally prepared by the KPMG EU Tax Center, including information on legislative developments regarding Pillar 2 (Finland, Germany, Sweden, Switzerland, and the UK).