Tax & Legal Update
Buy Now - Pay Later (BNPL) services to be treated as regular consumer credit
So far, the regulation of “Buy Now – Pay Later” (BNPL) services has been relatively lenient under Czech law thanks to an exemption in the Consumer Credit Act. This is about to change significantly. With the transposition of the revised Consumer…
Research and innovation subsidies for defence industry
In cooperation with the Ministry of Defence, the Technology Agency of the Czech Republic has published the preliminary parameters of the second public call under the PRODEF programme focused on applied research and innovation in the defence industry…
Top-up tax: simplification of information returns also confirmed for the Czech…
Based on the new OECD agreement on a common understanding among countries, it will be possible to utilize exemptions from the obligation to file an information return under the top-up tax framework in the Czech Republic as well. This has been…
Customs Administration launches new Automated Import System (AIS)
On 18 May, the Customs Administration launched the Automated Import System (AIS), which will gradually replace the existing eDovoz system. During the transitional period, both systems will operate in parallel, meaning that proceedings initiated…
GFD on determining tax residence of individuals
The General Financial Directorate (GFD) has published guidance on determining the tax residence of individuals, primarily with the aim of harmonising administrative practice and increasing legal certainty for taxpayers.
Pillar 2: simplification for filing GloBE Information Returns
The OECD has published a common understanding among jurisdictions that have implemented qualified top-up taxes. It responds to the approaching deadline for filing GloBE Information Returns and includes a commitment, under certain circumstances, not…
CJEU on VAT treatment of transfer pricing adjustments
The Court of Justice of the European Union (CJEU) has ruled on a case concerning transfer pricing in relation to vehicle repairs. According to its judgment, a transfer pricing adjustment does not constitute consideration for a supply of services…
SAC on taxation of travel allowances for foreign employees
In a recent judgment, the Supreme Administrative Court (SAC) addressed the question of which travel allowances paid to foreign employees on business trips to the Czech Republic may fall outside the scope of income tax.
Pillar 2: draft forms published by financial administration
The financial administration has published draft forms that are to be used to prepare top-up tax information returns and top-up tax returns. However, the final version of the forms, the method for completing them and the available filing options…