In Brief from International Taxation – June

Austria is considering introducing the digital service tax as of 1 January 2020. Based on the CJEU the national courts are not eligible to determine if certain requirements of a state aid regime are compatible with the fundamental freedoms. Aruba, Barbados and Bermuda were removed from the list of non-cooperative jurisdictions. German Lower Tax Courts introduces new interpretation of anti-treaty shopping rules. The Dutch appellate court decided that there is no reason for TP adjustment to a hybrid loan. Poland introduced the rules for defining a beneficial owner. 

20. 6. 2019

VAT News in June

With regard to the changes in the conditions of cross-border trading with goods in the EU from January 2020, the European Commission has published material with a description of selected aspects of the new rules. The General Financial Directorate (GFD) is finishing its work on the methodological note concerning the VAT treatment of the issuance and distribution of vouchers. What is new at the Court of Justice of the European Union (CJEU)? This and much more is debated in detail in the VAT news for June. 

18. 6. 2019

A New Transfer Pricing Guidance and the Czech Translation of the OECD Guidelines

The General Financial Directorate (the “GFD”) issued new Guidance D-34 on the application of international standards to the taxation of related party transactions. This guidance replaces existing Guidance D-332. Together with the new guidance, the Czech translation of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (2017 Edition) was published in the Financial Bulletin of the Ministry of Finance no. 5/2019. 

18. 6. 2019

Investment Incentives Will Have New Rules

On 7 June 2019, the Chamber of Deputies approved the government proposal of an amendment to the Act on Investment Incentives, Bulletin of the Chamber of Deputies no. 298 of 8 October 2018. The amendment can be expected to come into force approximately in September 2019. The approved amendment will represent the basic framework of conditions for awarding investment incentives. Most of the general conditions for granting investment incentives will be flexibly regulated by a governmental decree based on the economic situation and the needs of the labour market. 

14. 6. 2019

Announcement of the first call for proposals in the TREND programme

The Technology Agency of the Czech Republic announced the first call for proposals in the TREND programme, focusing on the support of applied research and experimental development. The objective of the TREND programme is to support projects focusing on implementing the results of industrial research and experimental development in practice and on the support of penetration of new markets. The programme is organised by the Ministry of Industry and Trade of the Czech Republic, but the provider of the support is the Technology Agency of the Czech Republic. 

24. 5. 2019

Finance Leases and Real Estate Acquisition Tax

The acquisition of ownership title to real estate subject to a finance lease by its user is, according to the Ordinance on Real Estate Acquisition Tax, exempt from this tax. However, the Ordinance does not define finance leases in any way and, in this regard, the Income Taxes Act is referred to. As the definition had changed over time (namely between 2014 and 2015), it was not fully clear what wording is effective in assessing the exemption. 

24. 5. 2019