Tax & Legal Update
New rules of work through digital platforms under way
The European parliament has approved the text of a directive on improving working conditions in platform work. The main aim of the directive is to improve the working conditions of platform workers, regulate the way platforms use algorithms, and…
Employers’ information obligation towards Labour Office to be fulfilled…
Following an extensive amendment to the Employment Act, the Ministry of Labour and Social Affairs has presented a new plan for digitisation, with a view to simplify its administration and improve its services. Among other things, this digitisation…
SAC on determining reference price
In assessing transfer prices, the Supreme Administrative Court (SAC) emphasised that it is necessary to distinguish between a hypothetical estimate supported by logical and rational reasoning and economic experience on the one hand, and a…
Class action act heading to senate
The Act on Collective Proceedings has passed its third reading in the chamber of deputies and is awaiting approval by the senate. It transposes an EU directive and aims to ensure better protection of collective consumer interests in disputes with…
Flexibility amendment to Labour Code headed into comment procedure
A flexibility amendment (flexinovela in Czech) to the Labour Code recently presented by the Minister of Labour and Social Affairs has already been sent to official commenting points. Its main objective is to increase the flexibility of labour…
Interest on retained VAT deduction: SAC verdict closes another chapter
In its recent judgment, the Supreme Administrative Court (SAC) has ruled that the statutory rate of interest on retained VAT deductions for the 2017 to 2020 period was in line with EU law. This dashed the hopes of many taxpayers who following a…
SDEU: prepaid cards single-purpose vouchers for VAT purposes?
In its judgment, the Court of Justice of the European Union (CJEU) held that prepaid cards constitute single-purpose vouchers if the place of supply and the VAT due are known at the time of issue. The CJEU further concluded that transfers of multi…
Changes in income taxes resulting from amendment to ICIF Act
The Chamber of Deputies of the Czech Parliament has passed an amendment to the Investment Companies and Investment Funds (ICIF) Act. It includes a technical amendment to the Income Tax Act that responds to changes in the ICIF Act and introduces…
SAC on definition of beneficial owner of royalties
In a recent judgment, the Supreme Administrative Court (SAC) confirmed the key criteria for determining a beneficial owner in the context of licensing agreements. The court indicated that a beneficial owner can be identified in the course of tax…
New chance for temporary protection holders: conversion to long-term residence
Following a consensus at the European Union level, the Ministry of the Interior of the Czech Republic is planning further changes concerning the residence of Ukrainian citizens who have fled their country in connection with the Russian aggression.…