Tax & Legal Update
Income taxes - summary of selected changes approved by chamber of deputies
At the end of June, the chamber of deputies approved in its third reading the bill on the Single Monthly Employer Reporting (JMHZ), including draft amendments to the accompanying laws. Although the JMHZ Act as a whole is due to come into effect on 1…
Taxation of employee stock option plans again and differently
The third change in a year and a half has been proposed to the taxation of employee stock and option plans within the debate of the laws accompanying the JMHZ Bill. This change relates to the taxation of the option plans for startups and entities…
Top-up taxes: extension of deadlines for tax returns and information returns
The chamber of deputies has approved an amendment to the Act on Top-Up Taxes extending the deadlines for filing the first-time Czech top-up tax returns and information returns to 18 months after the end of the taxable period. The amendment…
Event invitations
All eventsAdvocate General comments on VAT treatment of tooling
The Advocate General of the Court of Justice of the European Union (CJEU) has confirmed the current approach to the VAT treatment of the sale of tooling (moulds), whereby it is a supply of goods without transport and therefore a taxable supply at…
Flexinovela amendment to Labour Code in practice: changes to notice periods
One of the novelties brought by the Flexinovela amendment to the Labour Code is the change in termination notice periods: under the new rules, they start to run on the day the notice is served and end on the day numerically identical with that day.…
Deputies approve single monthly employer reporting
On 27 June 2025, the chamber of deputies approved the Bill on Single Monthly Employer Reporting (in Czech: jednotné měsíční hlášení zaměstnavatele or JMHZ) and its accompanying law.
AML Regulation: uniform rules and stricter supervision in the EU
The European Union is tightening and further harmonising its rules against money laundering and the financing of terrorism (AML/CFT). The new Anti-Money Laundering (AML) Regulation introduces a uniform and directly applicable framework for all…
Municipal court: VAT and gratuitous supply of land
The Municipal Court in Prague stated in its judgment that the tax base upon a contribution of land into a business company is its residual value if the right to deduct VAT was at least partially claimed upon its acquisition.
Supreme Court: landmark decision on termination of employment of foreigners
Czech legislation sets strict conditions for the employment of foreigners, especially from non-EU countries. Failure to comply with these conditions may result in fines of up to CZK 10 million and other negative consequences. Nonetheless, this…