Tax Newsletter - Archive
Forvis Mazars Tax View - archive of tax articles
Summary of Changes in the Consolidation Package related to Personal and Corporate Income Tax
The proposal of a law amending certain laws in connection with the consolidation of public budgets (the so-called consolidation package) was approved by the Senate on 8 November 2023, and signed by the President on 22 November 2023. We bring you a summary of the proposed changes related to personal and corporate income tax. The changes will generally be effective from 1 January 2024.
Deferred maturity of liabilities – abuse of law
In July 2023, the Supreme Administrative Court issued another of its decisions concerning the application of the concept of abuse of law by a tax administrator, and in this case as well, it sided with the tax administrator.
New rules set to combat VAT fraud - records of cross-border payments
An amendment to the Value Added Tax Act (hereafter the ‘Amendment’) is being discussed in the Chamber of Deputies which in connection with the related EU legislation introduces a new record-keeping and reporting obligations for payment service providers (hereinafter ’PSPs’). From 1 January 2024, PSPs will be required to keep records on cross-border payments and their recipients and provide them to the tax authorities.
CBAM: New obligation for importers
The European Commission has decided to face and fight with the climate changes by implementing the new system: the Carbon Border Adjustment Mechanism (hereinafter as ‘CBAM’) in order to reduce the risks of the carbon leakage. What does it mean and who will be affected?
Amendment to the Act on the Stay of Foreigners and related legislation
On July 1, 2023, Act No. 173/2023 Coll. entered into force, which significantly amends Act No. 326/1999 Coll., on the stay of foreigners, and related laws (among them, the amendment to Act No. 435/2004 Coll., on employment, is particularly significant.). The subject of this amendment to the Act on the Stay of Foreigners and related legislation is mainly the transposition of the EU directive on the so-called blue card (Directive No. 2021/1883/EU) into Czech legislation. The aforementioned directive significantly simplifies the conditions for obtaining blue cards and the residence of their holders in EU member states. You can find an overview of the changes that the amended regulation brings below.
Amendment to the Labour Code: changes in the Area of Home Office
The amendment to the Labour Code No. 262/2006 Coll. (the “Amendment”), which incorporates some of the recommendations contained in EU directives, was signed by President Petr Pavel on 17 September 2023. Since the autumn of the previous year, when the proposal was first published, it has undergone significant changes, including in the area of rules for remote work, commonly known as home office. We present to you the most important points in this area.
Amendment to the Labour Code: Agreements for Work Performed outside Employment Relationship
On 17 September 2023, the President of the Czech Republic signed the long-awaited amendment to the Labour Code. The new Labour Code includes significant changes, primarily affecting agreements for work performed outside the employment relationship (hereinafter referred to as “agreements”), remote work (home office), electronic signing and delivery of labour-related documents, and lastly, information about the content of the employment relationship. Below, we will present in more detail the changes related to agreements for work performed outside the employment relationship.
Transfer pricing controls on the rise again
Current statistics on the results of tax audits show that the Czech tax authorities’ interest in tax audits related to transfer pricing is growing again, following a temporary reduction in the 'accessibility' of the tax authorities during the COVID-19 pandemic. Both key variables monitored (i.e. additional tax assessed and additional increase in the tax base) increased by more than 70% in 2022 compared to 2021.
Planned changes in the field of VAT for immovable property
In the near future, there are several changes expected in the field of VAT for immovable property. From 1 January 2024, an amendment to the VAT Act should come into force in connection with the adoption of Act No. 284/2021 Coll., which amends, among other things, the VAT Act in connection with the new building regulations (hereinafter the ‘Amendment’). There is also a discussion about the publication of new information by the General Financial Directorate (hereinafter the ‘GFD’) regarding the application of the VAT Act for immovable property (hereinafter the ‘Information’). We have selected several interesting topics that we consider important. When reading the text below, it is necessary to consider that the Information and the legal interpretation of the Amendment are still being discussed.
VAT in the Digital Age
The European Commission’s action plan called ‘VAT in the digital age’ (hereinafter as ‘ViDA’) proposed a notable changes to the current VAT legislation. These changes aim to enhance the EU VAT system’s resilience to fraud and modernize it to adapt to the digital age. As ViDA package will be applied to all sales of goods and services to customers in the EU, all businesses based in the EU will be affected by the new rules.