Tax Newsletter - Archive
Forvis Mazars Tax View - archive of tax articles
Changes to the Intrastat Reporting
As of 1 January 2024, there have been several changes in the reporting of movements of goods between EU Member States and the Czech Republic. We provide a brief overview of these changes.
Interpretation of the General Financial Directorate on Changes in VAT Rates
The General Financial Directorate (hereinafter as ‚GFD‘) issued the expected methodological information on VAT rates changes from 1 January 2024 (hereinafter as ‚the Information’) on 12 January 2024. The aim of the Information was to eliminate interpretive ambiguities, even though a number of areas remain unclarified. Our comments on selected topics are mentioned below.
Introduction to Top-Up Taxes
In December of last year, the Czech Republic completed the implementation of the EU directive aimed at ensuring a global minimum level of taxation for multinational groups of companies and large domestic groups within the EU. It essentially introduced new taxes on profits, namely top-up taxes, and thereby new tax obligations for selected taxpayers.
SAC confirmed it is possible to claim higher tax credit from investment incentives in supplementary tax return
In a ruling from November of this year, the Supreme Administrative Court (SAC) confirmed that recipients of investment incentives can claim a higher tax credit when filing supplementary tax return, in which the tax base is increased. This approves the opinion of a part of the professional community, which has been questioned by tax authorities in some cases in recent years.
The Supreme Administrative Court (SAC) ruling on the deadline for filing a supplementary tax return for a lower tax
Recently, the so-called extended panel of judges of the SAC ruled on the correct application of the deadline for filing a supplementary tax return for a lower tax. This new decision finally brought clarity to the uncertainty that accompanied the filing of supplementary tax returns for a lower tax in many cases.
The tax reliefs for mineralogical and metallurgical processes from the perspective of excise and energy taxes will be abolished
As of January 2024, the excise duty refund on mineral oils consumed in mineralogical and metallurgical processes will be completely abolished. At the same time, the exemption of gas, electricity and solid fuels from energy tax due their usage in these processes will be abolished. All changes are part of the so-called consolidation package. In some cases, the tax advantage will be maintained, at least partially, through another tax institute.
Amendment to the Accounting Act - functional currency
The Bill amending certain laws in relation to 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. This consolidation package includes an amendment to the Accounting Act, which allows accounting entities to set an accounting currency different from the Czech koruna, the so-called functional currency, effective 1 January 2024.
What changes does the consolidation package bring from VAT perspective?
The amendment to the law, referred to as the consolidation package (print no. 488), was approved by the Parliament of the Czech Republic in November 2023 and subsequently also signed by the president. It is now certain that there will be several changes in VAT with effect from 1 January 2024. Below is an overview of the most important ones.
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.