News

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...

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...

The Importance of Correct and Updated Data in the Commercial Register – Failure to Comply May Result in the Involuntary Liquidation Ordered by Court

Friday, 14. December 2018 - 9:57
The Civil Code, the Business Corporations Act, and the Act Governing the Public Registers of Legal Entities contain a number of provisions regulating the non-voluntary and irrevocable dissolution of a legal entity with liquidation by a registration court. The court proceeds with such a dissolution if the legal entity fails to properly meet the...

How to treat vouchers and coupons in 2019?

Wednesday, 7. November 2018 - 10:23
The proposed amendment to the Act on Value Added Tax transposes changes made in Council Directive (EU) 2016/1065 which will take effect in January 2019 and stipulates, among other things, new harmonised rules for the application of value added tax to various types of vouchers. Until now, this matter has never been specifically addressed in the VAT...

Free entry in the ultimate beneficial owner data register – only until the end of 2018

Thursday, 25. October 2018 - 17:06
Since January 2018, legal entities entered in the public register and trust funds entered in the trust fund register have been obliged to state their ultimate beneficial owners in the newly established Register. The aforementioned obligation applies not only to business corporations and trust funds, but also associations, foundations, institutes,...

Amendment of the Investment Incentives Act: From support of assembly plants to innovations

Wednesday, 29. August 2018 - 12:09
To date, the primary aim of investment incentives has been the creation of new jobs and reduction of unemployment. Considering the present high employment rate, the State wants to show clearly, by amending the Act, that it is not going to support projects of this kind any more. From now on, incentives should be directed primarily at industries...

The same salary for the same work in the same location?

Wednesday, 29. August 2018 - 12:03
A Posted Worker is an employee who is sent by their employer to carry out a service in another EU member state on a basis of a contract entered into between the employer and the party which is the recipient of the service, an employee sent to another member state within a corporate group or an employee whose employer provides employment services...

Selection from tax case-law of the Supreme Administrative Court

Wednesday, 4. July 2018 - 14:38
Partial tax base for the purposes of tax abatements In its finding no. 6 Afs 73/2017-27, the Supreme Administrative Court defined the correct procedure of understanding of the partial tax base for the purposes meeting the requirements of Article 35ca of the Czech Income Tax Act, i.e. the possibility of a spouse abatement and an offspring...

Groundbreaking ruling of Supreme Court regarding manager contracts

Wednesday, 4. July 2018 - 14:32
The Czech Supreme Court has submitted to the legal opinion of the Czech Constitutional Court (“the CCC”), whose ruling we have informed you of and its summary may be found HERE, and by doing so has changed its established decision practice. On the basis of the groundbreaking ruling, the CSC explicitly allows companies to validly enter into a so-...

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