Tax and legal news

The Financial Administration has notified payers of road tax who have already made their 2022 advance payments, that such advance payments were abolished by the amendment to the Road Tax Act, effective from 1 January 2022.

From 1 February 2023, employers will be able to apply a new discount on social security contributions with respect to selected part-time employees. The aim is to support part-time employment for those who cannot work full-time because of their age or difficult life situations.

According to information issued by the General Financial Directorate (GDF), the non-monetary income for a low-emission vehicle will now be set at 0.5% of the purchase price of the vehicle per month from 1 July 2022 (1% for other types of cars). Even though the pertinent amendment to the relevant parliamentary act is effective from 1 July 2022, the transitory provisions allow the new rule to apply for the entire 2022 tax year.

The GDF has published a new list of questions and answers on the reporting obligation for cross-border tax arrangements (DAC 6). The information clarifies that only a tax-transparent entity has a reporting obligation under DAC 6. According to the GFD, tax-transparent entities, such as a public company or a mutual fund, should be treated in such a way that their shareholder (partner), who is not involved in the arrangement as an investor, will not be considered a user of the arrangement.

At the end of June, the Czech National Bank increased its repo rate again – this time to 7% p.a. The higher repo rate will also have a major impact on the impact on the tax rate under the Tax Code. As of 1 July, default interest is calculated at the rate of 15% per annum. Late payment of tax is therefore more expensive again.

In June 2022, the Supreme Administrative Court (SAC) issued an important judgement regarding the application of deductions on research and development. The judgement resolves two questionable issues: (i) the concurrence of a subsidy and the claiming of a deduction, and (ii) the need to allow the tax administrator to take the technical documentation of the R&D project (or a copy thereof) outside the company’s premises for the purpose of verifying the novelty element.