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

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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30th March 2021 / Competitiveness / Tax & Finance

2021 amendment to VAT Act introduces deemed supplier concept

The VAT position of electronic interface operators will change dramatically from 1 July 2021. In connection with a planned amendment to the VAT Act relating to e-commerce, individual e-shops ensuring the sale of goods from foreign suppliers will have to assess whether they are operating as deemed suppliers.
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Members of the American Chamber of Commerce in the Czech Republic