Accounting bill and related tax changes awaiting discussion by new deputies
The outgoing government approved a new accounting bill and its accompanying law, with proposed effectiveness from 2028. It will now depend on how the new chamber of deputies approaches the proposed legislation: if the deputies decide to pass it, all…
SAC: application of double tax treaty to sale of domestic real estate business share
The Supreme Administrative Court (SAC) ruled that a Cypriot company’s income from the sale of a business share in a Czech company whose value consisted in more than 90 percent of real estate is subject to
SAC: tax treatment of non-deductible expenses does not change by including them in transfer price calculation
The Supreme Administrative Court (SAC) has recently addressed again the tax deductibility of expenses, in particular dealing with a section of the Income
Extension of loan interest deduction: new tax relief for cooperative housing
The Senate of the Czech Republic approved a bill extending the possibility to deduct interest from the personal income tax base: apart from interest on mortgage loans, it will also be…
Single monthly employer reporting and related changes to income tax
In the beginning of March 2025, the government approved a bill on single monthly employer reporting (in Czech Jednotné měsíční hlášení zaměstnavatelů or JMHZ), which the Ministry of Labour and Social Affairs wants to launch from 2026. It should…
Income tax and VAT aspects of technical improvements to leased assets
The termination of a lease of premises to which the lessee carried out technical improvement may have significant tax implications for both the lessee and the lessor. If, with the lessor…
Technical amendment to consolidation package approved by chamber of deputies
During the discussion of an amendment to the Act on Investment Companies (Print 570), the chamber of deputies approved proposals to amend the Income Tax Act and other laws amended at the…
New case law on interest on loans against taxpayers
At the beginning of 2024, the Supreme Administrative Court (SAC) issued two judgments concerning interest income and expense on loans from a corporate income tax perspective. In the first…