Competitiveness / Tax & Finance

This section feature research, opinion and progress reports on how the Czech Republic compares to other EU countries economically. It includes analysis of international rankings such as the WEF and World Bank.

Spotlight issue

2nd June 2021 / Competitiveness / Tax & Finance

Coordination Committee: Is compensation for unconsumed goods subject to VAT?

The Czech Chamber of Tax Advisors has come up with a proposal to unify the interpretation regarding the application of VAT in situations when the customer compensates the supplier for expenses incurred by the supplier for material unconsumed upon the termination of manufacturing. The paper submitted for discussion to the Coordination Committee of the Chamber of the Tax Advisors and the General Financial Directorate mainly derives from the judgment of the Court of Justice of the EU in case C-295/17 MEO.
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14th May 2021 / Competitiveness / Tax & Finance

Tax waiver in relation to a professional education allowance

On 27 April 2021, the Minister of Finance issued another resolution on waiver of income tax on the grounds of an extraordinary event caused by the coronavirus spread. This time, it relates to the income tax corresponding to the tax liability arising from the breach of the condition of the operational time of assets used for professional education under Section 34g (1) of Act No. 586/1992 Coll., on Income Taxes, as amended (Income Taxes Act).
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8th April 2021 / Competitiveness / Tax & Finance

Undeterred by Covid-19, dealmaking in the CEE region remained remarkably steady in 2020

The disruption caused by Covid-19 to CEE’s M&A market was short-lived as dealmaking returned to the fore in the second half of the year, according to a new report published by Mazars in association with Mergermarket.
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6th April 2021 / Competitiveness / Tax & Finance

Transfer pricing - comparability analysis in times of COVID-19

The unprecedented changes in the economic environment following the outbreak of COVID-19 have created unique challenges for setting prices in intra-group transactions. The correct setting or verification of transfer prices for the past year while observing the arm’s length principle has become a hot topic. In this respect, identifying the actual effects of the pandemic on a company, and comparing and assessing them will be of key importance.
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1st April 2021 / Competitiveness / Tax & Finance

VAT exemption when testing for COVID-19

Following the mandatory testing of employees at COVID-19 and the resulting ambiguity in the treatment of VAT, the financial administration decided to clarify the conditions for the exemption of these services from VAT. The Directorate-General for Finance states in official information that COVID-19 testing services, whether mandatory or self-paying, are exempt from VAT without the right to deduct. These services include not only antigen or PCR testing for the presence of the virus, but also testing for the presence of antibodies. This approach will be officially applied with effect from 1 April 2021. 
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Members of the American Chamber of Commerce in the Czech Republic