Good governance / Tax & Finance

This section details initiatives to make government a competitive advantage. It includes analysis and reports of government initiatives, as well as data on accountability and performance measures.

Spotlight issue

1st October 2018 / Good governance / Tax & Finance

Deloitte: Research and Development Deduction: The Fundamental Ruling

The Regional Court in Hradec Králové ruled in favour of the plaintiff (ENERGO CHOCEŇ, s.r.o.), revoking the contested ruling and referring the matter back to the Appellate Financial Directorate for further proceedings, Deloitte writes.
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11th May 2022 / Good governance / Tax & Finance

Deadline for payment of real estate tax approaching

The due date for payment of the real estate tax is approaching and the tax administration is responding by sending out a total of 2.8 million envelopes to taxpayers with postal orders for payment of the tax. However, you may also receive payment instructions in your email inbox, if you have opted in to receive your tax payment details by email, or by data mailbox if you are a data mailbox holder. Nevertheless, we recommend that you keep an eye on the 2022 property tax deadline and do not rely solely on receiving a postal order or email.   
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5th April 2022 / Good governance / Tax & Finance

Donations to Ukraine: Does VAT obligation arise?

The General Financial Directorate has issued summary information on VAT implications of making donations to support Ukraine. While for income tax, Czech laws can be amended to respond flexibly, the situation is rather more complicated for VAT, as the possibilities to deduct VAT are based primarily on harmonised EU legislation.
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30th March 2022 / Good governance / Tax & Finance

Research & development tax allowance – still one of the most popular subjects for tax audits

The research and development (“R&D”) allowance is a tax allowance that can reduce an organization’s corporate income tax base. R&D activity differs from other common business activities by the presence of an appreciable element of novelty as well as research and technical uncertainty. But the fact that the element of novelty and research and technical uncertainties are not sufficiently defined in Czech legislation was confirmed by the Supreme Administrative Court back in 2015 (decision no. 10 Afs 24/2014-119 dated 11 June 2015). The Supreme Administrative Court also stipulated that correct application of these concepts may change depending on circumstances.
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