Tax & Legal Update
What to prepare for with introduction of JMHZ (part 3): sports and healthcare …
For the third month running, we are continuing our series of articles dedicated to selected employee benefits in connection with the planned introduction of the single monthly employer reporting (JMHZ) scheme. This time, we will focus on sports and…
Courts adopting stricter stance on ‘Svarc system’ – what to watch out for?
Situations where cooperation with entrepreneurs may be classified by the authorities as illegal work are a frequent cause for concern among employers. Structuring these relationships in a way that avoids falling under the definition of the ‘Svarc…
Packaging regulation in jeopardy?
Companies across numerous EU member states are voicing strong concerns over the new packaging regulation (Regulation (EU) 2025/40), which they will have to comply with as early as next year. What are the most contentious points? Can changes still be…
SAC rules on tax non-deductibility of interest on intra-group financing
In its August 2025 judgement, the Supreme Administrative Court (SAC) revisited the non-deductibility of interest expenses on a loan that arose in the context of a corporate group's internal restructuring. The court assessed the taxation of interest…
Subsidies for digitisation of SMEs under OP TAC
The Ministry of Industry and Trade has announced a call in the Digital Enterprise – Digital Technologies programme, aiming to increase the competitiveness of small and medium-sized enterprises (SMEs) by supporting investments in advanced…
SAC: tax treatment of non-deductible expenses does not change by including them in…
The Supreme Administrative Court (SAC) has recently addressed again the tax deductibility of expenses, in particular dealing with a section of the Income Tax Act allowing non-deductible expenses (e.g. entertainment expenses) to be treated as…
Additional research and development subsidies under TREND
The Technology Agency of the Czech Republic (TA CR) is about to launch its thirteenth call under the TREND programme to support projects in industrial research and experimental development.
GFD’s new instruction: penalty waivers of up to 100 percent
The General Financial Directorate's (GFD) Instruction D-72 on the waiver of tax accessories (tax-related penalties and interest) became effective on 15 September, responding to the amendment to the Tax Procedure Code in effect from 1 July 2025 that…
VAT implications of transfer pricing adjustments
The CJEU has confirmed that amounts invoiced for services between related companies calculated according to the OECD methodology are subject to VAT. If a parent company provides services to a subsidiary that are linked to its operating profit margin…