Czech Republic



Do you finance your company using debt capital and deduct the financial costs from the corporate income tax base?

If so, we recommend acquainting yourself with the proposed amendment to the Income Taxes Act in sufficient time in advance. The amendment is currently before its second reading in the Czech Parliament’s Chamber of Deputies as the implementation of the European Anti-Tax-Avoidance Directive (as we informed you in our August newsletter) will bring a significant […]

Overtime work – records and payment

Every now and then overtime occurs nearly in any line of business, in any job. How much overtime can employees work in a year? And how is it compensated? Overtime work is governed by the Labour Code, specifically section 78(1)(i) and section 93. Employees may be ordered by the employer to work overtime beyond their […]

Proposed amendment to the VAT Act – new rules for tax base corrections and VAT

In this newsletter you can learn about the proposed changes that will affect tax base corrections and VAT. The changes, which are to be brought by the draft amendment to Act No. 235/2004 Sb., on Value Added Tax (“VAT Act”), are expected to significantly affect all taxpayers wishing to issue a corrected invoice (tax document). […]

Have you published your financial statements in the Collection of Deeds?

If not, you face a risk of an administrative fine. Tax authorities have recently become more active in collecting the fine, as it does not require much effort. Do you know that the fine may be imposed not only by a commercial court but also by the tax authority? Companies are very well aware of […]

RSM CZ now offers specific real estate valuations for investors and developers from VAT perspective

When dealing with acquisitions of large properties intended for further development, we have recently received requests for expert opinions on purchase price allocations for the purposes of the VAT Act (Section 56 of Act No. 235/2004 Sb., on Value Added Tax). The valuations were related to brownfield sites in attractive locations in large cities where […]

Brexit – keeping track of the current mood and expectations of UK businesses

For a year, our colleagues at RSM UK have monitored the development of Brexit and its impact on the business environment in the UK. Businesses have been preparing for this milestone for months and are, surprisingly, in a rather positive mood in this context. However, what worries them most is the uncertainty of the government’s […]

New benefit under sickness insurance

A new benefit has been introduced with effect from 1 June 2018. This benefit is to help sickness insurance payers who need to care for a family member requiring a long-term and all-day home care following a hospital stay after a serious illness or injury and who are unable to carry out their job due […]

Changes in rules for taking and carrying forward holiday

This issue of our newsletter brings more details about the planned changes relating to taking and carrying forward holiday. Current rules governing carrying forward unused leave from one calendar year to another allow employees to carry forward holiday that the employees were unable to take due to their incapacity to work, maternity or parental leave, […]

Failure to deposit financial statements in the Collection of Deeds as a risk of company dissolution

Each company is obliged to publish mandatory documents in the Collection of Deeds kept for each company by a commercial court. What penalties may be imposed for a failure to do so? And are there any changes ahead? Such mandatory documents include founding documents, financial statements, annual reports and related-party reports. This obligation has been […]

Insufficient capacity? The solution is payroll outsourcing

You may be now facing the same problem as many other employers: insufficient capacity and substitutability of your employees, or finding and training of new employees. Unemployment in the Czech Republic has been at its lowest level for many months. As a result, HR management issues have become more and more uncomfortable for companies. For […]