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Latest news - October 2017

Last month’s tax and legal news in a few sentences.

  • The government approved a bill designed to detach consumer protection regulations from the Civil Code to harmonise the regulations with EU law and strengthen the position of customers. However, the question remains what position the new government and the chamber of deputies will hold in respect of this issue after the October elections.
  • To enhance the awareness and legal certainty of persons subject to corporate and personal income tax when claiming indirect research and development support, the GFD issued its information about pre-conditions for claiming deduction for research and development projects pursuant to Section 34 (4) and (5) of the Income Tax Act.
  • The government approved a memorandum on the automotive industry’s future in the CR. Its action plan contains twenty-five tasks to support electro-mobility, digitisation and autonomous driving up to 2025.
  • In its recent decision, the Supreme Administrative Court confirmed its opinion on the practical interpretation and application of Section 24 (2)(zc) of the Income Tax Act as amended until the end of 2014.
  • An amendment to the Act on International Cooperation in Tax Administration, significantly strengthening information exchange mechanisms and enhancing tax administration transparency, was published on 19 September 2017 in the Collection of Laws and has been in effect since then, along with a decree containing a country-by-country report template and instructions on its completion (no. 305 and 306/2017 Coll.).
  • An amendment to the Act on Sickness Insurance introducing a new long-term care allowance was published in the Collection of Laws under no. 310/2017. With effect from 1 June 2017, the new allowance will be provided to persons participating in the sickness insurance scheme, i.e. employees or self-employed persons, who cannot carry out their gainful activity as they care for a person in need of such care in their home.
  • Newly-published Act No. 303/2017 Coll. repeals the publicly beneficial status in the Civil Code and other regulations. Non-profit organisations were supposed to apply for this status in accordance with the original substance of the law. 
  • Government Decree No. 286/2017 Coll. increases the minimum wage to CZK 12 200 effective from 1 January 2018.