Articles by: Marie Velflová


Hidden amendment to the Income Taxes Act brings new relief for ceased enforcement proceedings

As part of the amendment to Act No. 120/2001 Coll., on Licensed Enforcement Agents and Enforcement Proceedings (Enforcement Act), among other things, Act No. 586/1992 Coll., on Income Taxes (ITA) has also been amended by inserting new relief for ceased enforcement proceedings with Act No. 286/2021 Coll. with effect from 1 January 2022. This relief will apply only to strictly defined historical enforcement proceedings and at the same time exclusively to low-value receivables not exceeding CZK 1,500. It is therefore not a long-term instrument, but rather a temporary measure following a change in the Enforcement Act. 

31. 8. 2021

Tax Perspective of Interpretations of the National Accounting Board I-42 and I-43

In January 2021, we informed you about newly issued interpretations of the National Accounting Board I-42 and I-43 that cover the financial reporting of the exchange rate risk in receivables denominated in foreign currency with a recognised provision and prepayments made in foreign currency. In today’s article, we would like to follow up on that and analyse these two interpretations from the tax perspective. 

26. 5. 2021

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). 

11. 5. 2021

Loss carryback – six questions and answers for its application

The preparation of tax returns for 2020 is culminating, and we can observe what a wide range of entities has been affected by the coronavirus crisis, which has caused so far profitable companies to be in the red numbers. That is why the loss carryback as a new tool of the Income Taxes Act is currently a widely discussed topic. We have prepared the most frequent questions and answers for you to help you navigate through this issue. 

19. 4. 2021

Tax Package at the Constitutional Court of the Czech Republic

As we have informed you in our previous articles, during the approval process of the Tax Package for 2021 (amendment of the Income Taxes Act as of 1. 1. 2021), doubts arose as to whether the legislative process took place in a constitutionally prescribed manner. Now, a group of senators asked the Constitutional Court of the Czech Republic to review the constitutionality of the Act’s approval process and proposed it be abolished. According to the Constitution of the Czech Republic, the Constitutional Court can decide on the abolishment of an act should it be contrary to the constitutional order. 

23. 3. 2021

Another confirmation of the interpretation by the Supreme Administrative Court regarding the assignment of receivables arising from contractual sanctions

In May 2020, we informed you about a ground-breaking decision of the Supreme Administrative Court which rejected the practices of the Tax Administration consisting in the necessity of “additional taxation” of the sanction receivables amount upon their assignment. In its new decision, the Supreme Administrative Court follows up on the previous decision and comments in detail on the rules applied in the determination of the income tax base when such receivables are assigned. 

27. 2. 2021