Tax & Legal Update
Indirect shareholding expenses: burden of proof always on taxpayer
The Supreme Administrative Court (SAC) dismissed the cassation complaint of one of the best-known holding companies in the Czech Republic that had disagreed with the adjusted amount of indirect expenses for holding shares in its subsidiaries to be…
Applications programme: subsidies for digital solution development
In cooperation with the Agency for Enterprise and Innovation, the Ministry of Industry and Trade has announced Call II under the Applications programme to support digitisation.
Government approves mandatory employers’ contribution to employees' savings
The pension system reform will bring about a major change for employees in certain high-risk jobs. As they will no longer be able to retire early without their pension being cut, the new law includes the obligation for employers to contribute to…
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All eventsKPMG survey: how are tax departments in CR keeping up with digitisation?
A recent KPMG survey shows that tax departments in companies in the Czech Republic are generally satisfied with the management of their tax agenda, but there are still some gaps in the implementation of new technologies; e.g., only 8% of respondents…
Change in depreciation of photovoltaic power plants awaits approval
The amendment to the Energy Act also includes an amendment to the Income Tax Act, specifically a change in the depreciation of photovoltaic power plants. The amendment proposes to abolish the special method of depreciation of photovoltaic power…
Riskiest systems stopped: AI Act in effect
As of August 2024, the EU Regulation laying down harmonised rules on artificial intelligence (the AI Act) has been in force. A first wave of effects has arrived, as from 2 February 2025 the regulation bans the use of certain AI systems that the…
Fuel cards and VAT: What does new GFD’s information contain?
At the end of last year, the General Financial Directorate (GFD) issued long-awaited information on fuel cards following the much-discussed CJEU judgment of May 2019 in the Vega International Car Transport and Logistic case and the conclusions of…
Czech companies at start of Ukraine's recovery
The EU Ukraine Facility, implemented in cooperation with the National Development Bank (NDB), provides Czech companies with the opportunity to participate in the reconstruction and recovery of post-war Ukraine and offers loan guarantees and…
E-invoicing has green light in Germany
From 1 January 2025, companies established in Germany are obliged to use electronic invoicing for all transactions between local business partners. This makes Germany the first country to introduce e-invoicing under the approved VAT in the Digital…
Trump tightens US immigration policy. Will Czech visa applicants be affected?
On 20 January 2025, just hours after taking the oath of office, US President Donald Trump issued six executive orders covering various areas of immigration policy. These orders, already announced during his election campaign, are intended to…