News

Amendment to the Labor Code – abolition of the waiting period with effect from 1 July 2019

Tuesday, 9. April 2019 - 16:01
At its meeting held on 22 January 2019, the Chamber of Deputies of the Czech Republic decided to abolish the waiting period (i.e. the first three days of the employee’s incapacity for work). As a result of this decision made by the Chamber of Deputies, the first three days of temporary incapacity for work will be reimbursed to employees from 1...

Methodology of how to calculate the amount of compensation for non-pecuniary damage in the case of death of those next of kin

Thursday, 21. March 2019 - 11:14
In late 2018, Supreme Court of the Czech Republic issued a groundbreaking decision regarding the method of determining compensation for mental suffering in the case of death of the next of kin. In the case of those next of kin, i.e. the spouse, parents and children, the Supreme Court set as a basic indication an amount twenty times the average...

Change in the income tax base for foreign employees

Thursday, 7. March 2019 - 17:22
The new year has not brought many legislative changes related to the income tax yet – these will be included in the 2019 tax package which is now being discussed. However, in this article we would like to introduce to you one important change that came into effect on 1 January 2019. In December last year, the Czech president managed to approve an...

Agreement on local court jurisdiction in GT&C

Thursday, 7. March 2019 - 17:20
Under the Code of Civil Procedure, the parties to proceedings in cases related to relationships between entrepreneurs arising from business activity can agree in writing on the local jurisdiction of another court of first instance, unless the law stipulates exclusive jurisdiction. This prorogation agreement is routinely included in the text of the...

Offsetting uncertain or indefinite claims

Thursday, 7. March 2019 - 16:49
The new Civil Code has brought several significant changes, one of which is the issue of unilateral offsetting. The Civil Code provides that uncertain or indefinite claims may not be offset. However, the explanatory memorandum did not provide any explanation as to which claims should be regarded as uncertain or indefinite. Partial clarification...

New, Higher Intrastat Reporting Threshold Applicable since 1 Jan 2019

Tuesday, 5. March 2019 - 15:57
On 1 Jan 2019 the Intrastat reporting threshold has been raised to CZK 12 million for dispatches and CZK 12 million for arrivals. Until 31 Dec 2018 the reporting threshold amounted to CZK 8 million. The consequences of raising the reporting threshold are as follows: If a provider of statistical information reached the CZK 8 million reporting...

Proposed change to the entitlement to deduct VAT for payer registration

Monday, 25. February 2019 - 15:37
Within the 2019 tax package, it is proposed to exercise the entitlement to deduct VAT on the received taxable transaction made during a period of 60 months before the date of registration if: - such a transaction became part of the fixed assets capitalised in a period of 12 consecutive months before the date on which the taxable person became a...

Criminal Record Certificates in the EU without Translations and Apostille

Wednesday, 9. January 2019 - 11:12
  Submission of a Criminal Record Certificate can be undoubtedly marked as “evergreen” faced by many EU citizens when dealing with authorities of another member state. The truth is that nowadays most member states check their own citizens themselves and the respective authorities can thus make their own conclusion regarding the person’s criminal...

An amendment to civil lawsuit will (may) restrict expert opinions submitted by parties to a dispute

Wednesday, 19. December 2018 - 14:56
The House of Deputies is currently considering a draft amendment to civil lawsuit. The amendment should affect expert opinions and the assessment thereof by the court within the framework of the relevant proceedings. The objective of the amendment is to clarify and shorten civil court proceedings.  Given the current situation, each party may...

Reporting Taxable Transactions in an Incorrect Tax Period

Friday, 14. December 2018 - 10:05
Although Section 104 of Act No. 235/2004 Regulating the Value Added Tax is fairly straightforward and it has been part of the Act for a long time, the tax administrators’ approach to its application has varied. Conclusions reached by a special Coordination Committee in May 2018 could help unify the process. The Coordination Committee 521/02.05.18...

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