Tax & Legal Update
R&D allowance from 2026 – what will change and what will remain the same?
Several fundamental changes in research and development (R&D) allowances are being introduced by an amendment in effect from 1 January 2026. These mainly concern the method of calculating the allowance and the deadline for claiming it. However, the…
Permanent establishment occurring through home office arrangements: OECD updates its…
The OECD has published a long-awaited update to its Commentary on Article 5 of the Model Tax Convention on the Avoidance of Double Taxation, which deals in more detail with the concept of a permanent establishment where employees work from home or…
SC: Employers' responsibility for occupational health and safety extends to…
The employer's obligation to ensure occupational health and safety (OHS) is traditionally perceived as an obligation towards their employees. However, in a recent landmark decision, the Czech Supreme Court confirmed that an employer's obligation to…
KPMG’s Tax and Legal Forum: Karel Šimka’s comments on SAC case law re ‘Svarc’ system…
The participants in the recent Tax and Legal Forum were given a behind-the-scenes look at the decision-making and functioning of the Supreme Administrative Court (SAC) by its president, Karel Šimka. We bring you part of the interview with him…
Register of beneficial owners publicly inaccessible from 17 December 2025
The Ministry of Justice has announced that from 17 December 2025, it will make the Register of Beneficial Owners (in Czech: Evidence skutečných majitelů, ESM) publicly inaccessible. This step follows current European legislation and recent case law…
Is this the end of ‘forever chemicals’ in the EU?
The European Union plans to gradually restrict the use of ‘forever chemicals’ found in packaging, textiles and electronics and subsequently accumulating in nature and the human body. The aim is to protect the environment and human health.
CJEU: supply of components and supply of equipment for their manufacture not a…
Are the supply of components (products) and the supply of equipment necessary for their manufacture a single supply subject to the same VAT treatment? According to a judgment of the Court of Justice of the European Union (CJEU), no. Since the…
Proposal to reduce minimum assessment base for social insurance for self-employed…
One of the commitments of the incoming government coalition has been to end the increase in the minimum assessment base for social security contributions for self-employed persons. To this end, it has already submitted a motion to amend the law to…
SAC on conditions for depreciation of technical improvements to real estate
The Supreme Administrative Court (SAC) has addressed under what conditions building alterations to real estate can be considered technical improvements eligible for tax-deductible depreciation. The court concluded that depreciation can only be…
TWIST programme offers subsidies for AI research and development
The Ministry of Industry and Trade launched a new call under the TWIST programme, aimed at supporting the development and use of artificial intelligence. Companies have the opportunity to receive up to CZK 30 million for projects that bring…