Tax & Legal Update
Amortisation of valuation differences arising on company transformations part of…
The Supreme Administrative Court (SAC) has issued a judgment that may mark a change in the understanding of valuation differences arising on company transformations. Can we expect that Czech administrative courts will take the economic reality into…
When is an additional VAT return really necessary?
Corrections to already filed VAT returns are not uncommon in practice. Often, we either do not have the tax documents in the period to which they relate or we simply forget to include them. Let's take a look at situations when we are obliged to file…
Class actions are newly available in the Czech Republic
The closely watched innovative Class Actions Act entered into force on 1 July 2024, making it possible for groups of people to combine their claims based on the same or similar grounds into a single action and save on court costs.
Due Diligence Directive: what companies need to know
The European Union is introducing a new Corporate Sustainability Due Diligence Directive (CSDDD), which introduces new obligations for businesses. Consequently, these should be prepared for greater scrutiny of their activities and their supply…
Supreme Administrative Court defends taxpayer’s acquisition structure
The Supreme Administrative Court rejected the tax administration's view that the purchase of a share in a corporation financed by a loan and the subsequent merger to transfer the loan to the newly acquired operating entity constituted an abuse of…
New way of reporting employees posted to the Czech Republic
The Ministry of Labour and Social Affairs has introduced new rules for the notification of the posting of workers in the Czech Republic within the framework of the transnational provision of services. The rules are effective from 1 July 2024 and…
Creditor protection under amendment to Company Conversions Act
On 19 July 2024, a major amendment to the Company Conversions Act (No. 162/2024 Coll.) will enter into effect. In this article, we summarise the changes concerning the protection of creditors and persons participating in the conversion and the…
Obligations under deposit-refund system for PET bottles and cans
Not all PET bottles thrown away in yellow bins are recycled. The mandatory charging of deposits on them should help in this respect. The Ministry of the Environment has published a draft amendment to the Packaging Act. Below we summarise the impact…
Generous subsidies for industries under EU ETS scheme
The State Environmental Fund of the Czech Republic has announced ENERG ETS No. 1/2024, a new call under the Modernisation Fund focusing on the modernisation of energy sources and production or processing facilities in industries under the EU ETS…