COVID-19 and intra-group services – a transfer pricing perspective
Implementing emergency plans, trying to keep a positive cash flow, or monitoring the quick succession of legislative changes adopted in connection with the coronavirus pandemic – these have become corporate management’s daily bread. Remuneration…
New duty to provide information on tourism services
Within the measures adopted in response to the COVID-19 pandemic, legislators have passed a legal amendment introducing the duty for tourism services intermediaries (typically Airbnb and similar platforms) to provide information on these services to…
Compensation bonus for members of limited liability companies with no employees or only family members
The government has passed an amendment to the Act on Compensation Bonuses, allowing them to be also paid to members of limited liability companies (‘s.r.o.s’) that have no employees and no more than two members, or members who belong to a single…
The issue of validity of “forced” settlement with the State
From the beginning of April, employers may apply for a contribution towards wage compensations from the Antivirus programme guaranteed by the Ministry of Labour and Social Affairs. The Ministry of Labour and Social Affairs grants the contribution on…
Waiver of VAT on the grounds of an extraordinary event
Value added tax on free delivery of goods and provision of services to selected entities is waived until the end of the state of emergency declared to fight the spread of the SARS-CoV-2 coronavirus provided that the goods and services serve to stop…
Certain issues concerning postponement of loan repayment
A new Act specifying certain measures related to repayment of loans during the COVID-19 pandemic came into effect on 17 April 2020. However, the possibility of postponing the repayment of certain loans entails some interpretation ambiguities as well…
Certain extraordinary measures have been cancelled by the court. What will be the practical impacts?
The Municipal Court in Prague cancelled four measures of the Ministry of Health with effect from 27 April. At the same time, the Government started to gradually loosen the current restrictions. The court decision will thus probably have the most…
Impact of governmental measures on the application of double taxation treaties
In response to the extraordinary governmental measures adopted in the context of the COVID-19 pandemic (e.g. restriction of travel, quarantine), the OECD has released a recommendation to address certain tax implications of a temporary change of the…
COVID Plus guarantees and postponement of the deadline for applications for subsidies
The anticipated Government regulation specifying detailed conditions for the provision of guarantees under the COVID Plus programme has been published in the Collection of Laws. Guarantees for loans granted within this programme will be provided by…
Relaxing the rules for short-term business trips and employment of EU citizens
With the decreasing numbers of patients infected by the COVID-19 disease, certain measures imposed by the Government and affecting Czech employers and the entry of foreigners – EU citizens and third-country nationals – to the Czech Republic have…
Postponement of advance payments on income tax on dependent activities and of withholding tax
The General Financial Directorate (GFD) has published a guideline allowing payers of personal income tax on dependent activities to apply for postponement of advance payments or for payment of the tax in instalments. Postponement (or payment in…
Deadline for VAT refund only extended from next year?
On 21 April 2020 the government approved a bill on the administration of tax deductions, which should ensure that excess deductions of VAT shall be refunded to VAT payers within the currently valid 30-day deadline. The bill intends to suspend the…