Tax & Legal Update
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 judgment, the SAC addressed the tax deductibility of costs…
Details of 2025 amendment to VAT Act - Part II
Below, we continue with an overview of the most important changes brought by the draft amendment to the Value Added Tax Act, this time focusing on the construction sector, in particular on changes in definitions, alterations in conditions for the…
Tax administration principles: responsiveness and decency in tax proceedings
Following the principle of responsiveness and decency, tax administrators should try to accommodate persons involved in tax administration. At the same time, both parties to the proceedings should avoid any impoliteness or indecency. Is this…
Changes in employment of persons with disabilities underway
The Ministry of Labour and Social Affairs has submitted a legislative proposal for changes concerning the employment of persons with disabilities. The amendment to the Employment Act contains new conditions for the payment of an allowance to support…
SAC on beneficial ownership of royalties
A recent Supreme Administrative Court (SAC) judgment dealt with beneficial ownership in the context of licensing agreements. In its decision, the SAC emphasised that an entity who is unable to freely decide on the use of collected royalty payments…
Regulated gender ratio in companies
The Czech Republic must comply with obligations under EU law regarding the gender balance in the management of certain listed companies. The Minister for European Affairs proposes to stipulate the new obligations in an amendment to the Capital…
SAC on VAT exemption for intra-community supply
The Supreme Administrative Court (SAC) did not recognise the right to VAT exemption for a supply of goods to another EU member state, as there were doubts whether the goods had been supplied to a person registered for tax in another member state,…
Technical amendment to consolidation package on horizon
As part of the second reading of an amendment to the Act on Investment Companies (Print 570), the coalition deputies have submitted proposals to amend the Income Tax Act and other laws amended at the end of 2023 within the consolidation package,…
CJEU: Is being a board member of a public limited company an economic activity?
The Court of Justice of the European Union has ruled that the activity of a Luxembourgian board member of public limited companies is not carried out independently if the member neither acts on their own behalf and responsibility nor bears the…
Redefining relevant market in competition law
For the first time since 1997, the European Commission has adopted a new notice on the definition of the relevant market. The definition plays a crucial role in the assessment of cartels and mergers, and in other areas of competition law. The notice…
Details of 2025 amendment to VAT Act - Part I
The draft amendment to the Value Added Tax Act, currently in the external comment procedure, introduces extensive changes as it transposes EU directives and responds to CJEU rulings and practical experience. Below we present the first part of these…