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Transfer pricing audits – even tax authorities make mistakes

19.4.2018
With increasing determination, tax authorities continue with their inspections of transfer pricing policies. Nevertheless, even they sometimes take unlawful steps we should all know about, either when preparing or later defending our transfer pricing rules. In one of its recent judgments, the Czech Supreme Administrative Court (“SAC”) stood up for a taxpayer and ruled that […]

New developments in payroll-related matters in 2018

18.1.2018
Dear clients, We provide you with a brief overview of changes and new developments in payroll effective in 2018. Minimum wage increased The minimum monthly wage for full-time employment has been increased from the current CZK 11,000 to CZK 12,200 and the minimum hourly wage has been increased from CZK 66 to CZK 73.20. Maximum assessment basis […]

VAT as a part of the real estate acquisition tax base – continued

28.11.2017
As presumed in our previous newsletter, the case of the village of Střelské Hoštice continues with a rather nice surprise. This time, however, the surprise came from the tax administration itself. The tax administration published a new press release on 24 November 2011 in which it significantly expanded on its original statement of September 2017. More […]

Is VAT included in the real estate acquisition tax base?

25.9.2017
The principle of the benefit of the doubt has helped many taxpayers to save on tax. However, the taxpayer must usually enforce the principle by legal action. This was the case of the village of Střelské Hoštice that has recently attracted much media attention. What was it about and what effects does it have on […]

Combating tax ‘optimisation’ – Implementation of the ATA Directive (EU, CR)

7.8.2017
Another tool used by the Czech tax administration to combat tax evasion is the ongoing implementation of the ATA Directive (Council Directive (EU) 2016/1164 laying down rules against tax avoidance practices) that is to be completed by 31 December 2018. Primarily, the Directive lays down new rules for the tax-deductibility of interest expenses. The rules are […]

Fight against tax ‘optimisation’ – country-by-country reports starting to look clearer in the Czech Republic

20.7.2017
The Czech Chamber of Deputies approved an amendment proposed by the government to the International Cooperation in Tax Administration Act. The bill introduces an obligation of country-by-country reporting (CBCR). What does CBCR involve? And what effect can it have on you? On 12 July 2017, the Czech Chamber of Deputies approved in a third reading […]

Transfer pricing in the light of Trump’s tax reforms

9.2.2017
Following Donald Trump’s inauguration last Friday, many businesses are keenly awaiting the effect the tax policy announced by the president will have on them. Prepared in association with our colleague Ken Almand of RSM UK, this article describes what Trump’s tax plan will change. The main change is a cut in the US corporate tax […]

Real estate acquisitions more expensive for developers after 1 November 2016?

22.8.2016
About half a year ago, we informed you about changes made by the Senate’s legislative measure regarding real estate acquisition tax. These also include a major change as to the payer of the tax. After many discussions and negotiations, an amendment was published in the Czech Republic’s Collection of Laws last week, stipulating that in […]

Electronic cash registers enacted – Go-live date set for December

7.7.2016
The Electronic Cash Registers Acct has been adopted and published in the Collection of Laws on 15 April 2016 (as Act No. 112/2016 Sb.), jointly with accompanying Act No. 113/2016 Sb. The obligation to introduce electronic cash registers (ECRs) is divided into stages by the type of payments received by taxpayers in their businesses. On […]

Tax News 2016

15.1.2016
New Year 2016 has brought some significant tax changes for taxpayers. The Christmas gifts were not exactly lavish when it came to income tax but a bit more generous in the case of value added tax (“VAT”). As for the latter, a control report must be filed along with a VAT return, for the first […]