Tax and legal news

In June 2021 we will be celebrating our 15th anniversary on the Czech and international tax markets.

Together with the new possibility to use retroactively a tax loss, taxpayers have the possibility to waive the right to use a tax loss as a deductible item in future periods. If taxpayers use this possibility, then they will not be subject to a five-year prolonged period in respect of possible tax inspections by the tax authorities (as has been the case until now).

The Financial Administration has published on its webpages comprehensive information on a special regime regarding the “One-Stop-Shop” collection of VAT. The regime is scheduled to come into effect on 1 July 2021.

At the end of 2020, the OECD published a guidance note on the transfer pricing implications of the COVID-19 pandemic. The goal of the guidance note was to clarify how the “arm’s-length” principle and the OECD Directive on transfer pricing should be applied to problems related to the COVID-19 pandemic.

We have informed you previously that directive no. 2018/822/EU – the so-called “DAC 6” – imposes a new duty on intermediaries and taxpayers to notify the local authorities about their cross-border arrangements. Given the fact that the notification duty may be satisfied in various ways in the various EU countries, and in view of the fact that not meeting this duty may lead to strict sanctions, we recommend that you thoroughly examine and understand your notification duty in this respect.

The president signed a bill in January 2021 which increases temporarily the limit for deducting donations as a deductible item from the tax base.