News

An amendment to the Business Corporations Act as a step towards relieving the entrepreneurs?

Friday, 12. July 2019 - 13:25
The Chamber of Deputies is currently discussing in the second reading an extensive amendment to the Business Corporations Act, which has already received a considerable response in the debate, in which a few hundred comments have been raised. However, no less passionate discussion is also expected in the Czech Parliament. What fundamental changes...

Constitutional Court facilitates legalization of residence of family members of Czech nationals

Wednesday, 29. May 2019 - 16:19
It held true pursuant to the 2017 amendment to the Act on Residence of Foreign Nationals that if a family member of a Czech national who resided in the Czech Republic without a valid residence permit or if the so-called order to exit was given to him/her, filed an application for temporary or permanent residence, the Ministry of the Interior had...

Costs of Fuel for a Company Fleet Vehicle Provided for Private Use

Wednesday, 29. May 2019 - 16:11
If an employer provides to an employee a motor vehicle for private use, it is necessary to have some legal document establishing the employee’s right to use the company fleet vehicle for private purposes – such as a written agreement specifying the possibility to use the vehicle for private purposes too, free of charge.  Employees are obliged to...

Is it possible to agree upon a non-competition clause for gainful activity which is not the same as the employer’s line of business?

Wednesday, 29. May 2019 - 16:02
It is generally known that the employer may oblige the employee to refrain from any gainful activity which is the same as, or which would be of a competitive nature in relation to, the original employer’s line of business for a certain period of time (up to 1 year after termination of employment). In this context, however, it is necessary to...

New obligation to report tax exempt income

Tuesday, 7. May 2019 - 15:34
Within the framework of the 2019 tax package, the notification duty was extended concerning income generated by tax non-residents from sources in the Czech Republic that are subject to the withholding tax. Taxpayers are newly obliged to inform the tax administrator of paid income that is exempt from income tax or that is not taxed in the Czech...

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...

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...

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