Czech Republic


First Tax Legislation Amendments Related to Coronavirus Epidemic Waiting for President’s Signature

In addition to what are called the liberation packages, the last of which again postpones the deadline by which individual and corporate tax payers need to file their 2019 tax returns without any sanctions until 18 August 2020, and the validity of which only required publication in the financial newsletter, there are also some changes […]

Tax Code Amendment Ultimately Not Adopted with Only Three Votes Short

We will have to wait a little bit longer because easier electronic communication with the Tax Office and management of our tax accounts is still to come. The Chamber of Deputies was only three votes short of adopting the amendment to the Tax Code. At the same time, however, the subtle extension of the deadline […]

Extraordinary tax measures in response to the spread of coronavirus in the Czech Republic II

Below is a list of the new series of measures relating to income taxes, VAT and real estate acquisition taxes which have already become available to all taxpayers, and of measures which will become effective as soon as the related Act is amended. 1. Already in effect: Prepayments on individual and corporate income tax due […]

Extraordinary tax measures in response to the spread of coronavirus in the Czech Republic and Slovakia

CZECH REPUBLIC In connection with the spread of coronavirus, the Minister of Finance of the Czech Republic has used the powers granted to her by in the Tax Code and has decided to waive penalties for late filings and related late tax payments and certain administrative fees. Detailed information on each of the measures can […]

The legislative process for tax in connection with the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union

Most of you are undoubtedly aware of the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union (“Brexit”). In the context of Brexit, countless questions have arisen about its tax implications. The text below summarizes the tax legislation changes that have been adopted in the Czech Republic in connection […]

Invitation to join us for a webinar: What’s next for the taxation of the digital economy?

As the digital economy has grown, businesses are providing services and making sales in geographic locations where the service provider or the seller does not have a physical presence.  This has increased global business opportunities, especially for middle market companies that are attracted by the potential of larger international markets. However, for tax authorities, which […]

EU Tax Intermediaries Directive – “DAC 6”

The EU Tax Intermediaries Directive (“Directive”) introduces new mandatory obligation on intermediaries and taxpayers to report information on cross-border arrangements that meet certain criteria to the tax authority (“EU Disclosure Requirements DAC 6”). This Directive will be implemented into the Czech legislation next year, but with retrospective effect. The Czech Chamber of Deputies is currently […]

What is needed to eliminate withholding tax on the payment from Poland

If you have customers in Poland and you invoice them for your services, you might be surprised what information you will be required to provide to your Polish customers in order to eliminate withholding tax on the payment from Poland. This is due to a change of Polish legislation as of 1 January 2019 stipulating […]

EU Commission approved request of Czech Republic for generalized reverse charge mechanism

EU Commission approved the request of Czech Republic for possibility to use generalized reverse charge mechanism. If adopted, reverse charge application would be related to all domestic transactions above 17,500 euros, or equivalent 450,000 CZK. Until now the local reverse charge mechanism was permitted as a derogation from EU VAT Directive in sectors vulnerable to […]

New notification obligation regarding income paid abroad applicable as of the end of May

As we have informed you, most changes affecting income taxes that were adopted as part of the ‘2019 tax package’ will only enter into effect in 2020 or as of the tax period beginning after 1 April 2019. But if you have foreign relationships, there is one inconspicuous change that may also affect you – […]