Tax and legal news

On 1 July 2021, about 130 countries, including the Czech Republic, issued a joint statement on the two-pillar policy, under the auspices of the OECD, that will be the base for negotiations in the field of international taxation.

An amendment to the Employment Act that came into effect of 7 July 2021 introduces an option now available to employers in the form of short-term work – “kurzarbeit”. The government may approve a “kurzarbeit” regime in the event of a natural disaster, cyberattack, pandemic or other extraordinary situation.

The concept of a trust was introduced into the Czech legal system in 2014; however, unlike the situation in other countries, it is not a commonly used legal instrument in the Czech Republic.

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.