Tax & Legal Update
News on double taxation treaty with Russia
On 8 August 2023, Russia discontinued the application of key articles of its double taxation treaty with the Czech Republic and other 37 countries. In the Czech Republic, this suspension has been legally effective from 29 September 2023. The…
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…
Innovation Fund offering subsidies for innovative low-carbon technologies
The Innovation Fund is one of the largest subsidy programmes aimed at supporting low-carbon and innovative technologies. The programme is announced and managed by the European Climate, Infrastructure and Environment Executive Agency (CINEA) and…
Adjustments to top-up taxes: what will forthcoming amendment change?
The Ministry of Finance has published a draft amendment to the Act on Top-Up Taxes, which incorporates the rules contained in the OECD’s documents. In addition to many legislative changes and additions in the area of safe harbours, the draft changes…
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.…
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 end of 2023 within the consolidation package. The proposals…
Chamber of deputies passes amendment important in company conversions
The Chamber of Deputies has passed an important amendment to the Act on Conversions of Commercial Companies and Cooperatives (the Company Conversion Act). Its main novelties deal with the transfer a company's registered office outside the European…
Estimated payables as seen by recent case law
The Supreme Administrative Court (SAC) has recently issued two judgments dealing with estimated payables and their effect on the income tax base. The court’s reasoning provides taxpayers with important general information on what to have ready for…