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

5th August 2020 / Competitiveness / Tax & Finance

Pitfalls of managing transfer prices by means of marketing services

The Municipal Court in Prague confirmed the tax administrator’s approach reclassifying marketing services contracted and provided to abroad to ‘consideration received from a third party’. In the court’s opinion, the services were rendered directly to the Czech recipients of the goods. The consideration received from abroad shall thus enter into the tax base of local sales of the goods, and shall be subject to Czech VAT.
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29th July 2020 / Competitiveness / Tax & Finance

COVID-19 and transfer pricing policy – comparability analysis

With the economic downturn brought about by the COVID-19 pandemic, companies face the challenge of determining whether they should modify their transfer pricing policies. The decision has to be made at a time when comparable data necessary for the analysis are not yet available. At the moment, relying on prior-year data and three-year averages of financial results of comparable companies may not be an appropriate method of setting intra-group prices.
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24th June 2020 / Competitiveness / Tax & Finance

Despite External Industry Threats, Few Wealth Managers Plan to Change Their Business Models, Accenture-Orbium Report Finds

Profitable opportunities exist for wealth managers who can develop unique, personalized services and products and explore untapped opportunities in alternate asset classes outside of stocks and bonds   Despite growing external threats to wealth managers’ businesses, including losses from intergenerational wealth transfers, nearly four in five wealth managers (78%) in Europe and Asia don’t plan significant changes to their traditional business models, according to a new report from Accenture (NYSE: ACN) and Orbium, part of Accenture Wealth Management.
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16th June 2020 / Competitiveness / Tax & Finance

Card payments in quarantine: Czechs took the bicycle shops by storm

Sales of bicycles and bicycle equipment grew unexpectedly during the Covid-19 pandemic. In May, they were even twice as high year-on-year. People also spent more on golf and sports equipment and clothing. On the contrary, revenues from cultural activities went steeply down due to the closure of cinemas, theaters and concert halls. Thanks to online sales, music and book stores were an exception, according to statistics on card payments in ČSOB in the area of leisure time from March to May.
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15th June 2020 / Competitiveness / Tax & Finance

M&A market in CEE region undergoing correction, three quarters of investors intend to continue in acquisitions

The mergers and acquisitions market was fundamentally affected by the Covid-19 pandemic and the Central and Eastern Europe region will evidently experience a “lean year” following record periods. While 726 significant transactions at a value of 42.3 billion euros were carried out in the region in 2019, according to the international study “Mazars Investing in CEE: Inbound M&A Report 2019/2020”, this year the acquisition market, according to experts and investors, will develop similarly as in the period of the previous financial crisis in 2008 due to the effects of the pandemic.
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Members of the American Chamber of Commerce in the Czech Republic