Tax

Remission of penalties, interest and now also fines for the late filing of a tax return

The additional tax assessment by the tax administrator gives rise to the obligation to pay interest on arrears; in addition, this often entails penalties, which may, in total, exceed the amount of the additional assessment. The institute of individual remission of tax penalties represents the way to mitigate the penalty consequences of the additional tax assessment. Moreover, on 1 January 2021, the possibility of remitting the fine for a late tax return was enshrined in the Tax Code. 

27. 4. 2021

Announcement of the QuantERA public call

The Technology Agency of the Czech Republic has launched a public call focused on research in the field of quantum technologies, which is intended for Czech partners of international consortia, which can be both research organisations and companies. The Czech applicant will then be subject to rules based on the EPSILON programme (Sub-Programme 1 – Knowledge Economy), from which Czech entities in international projects will be supported. The total amount of aid for Czech entities in international projects is then set at EUR 1 million. 

27. 4. 2021

Announcement of the public call M-ERA.NET 3 CALL 2021

The Technology Agency of the Czech Republic has announced a public call focused on material research, which is intended for Czech partners of international consortia, which can be both research organisations and companies. For the Czech candidate, the rules based on the EPSILON programme (Sub-Programme 2 – Energy and Materials) apply, from which Czech entities in international projects will be supported. The total amount of aid for Czech entities in international projects is then set at EUR 2 million. 

27. 4. 2021

Information of the General Financial Directorate on the effects of the Covid-19 pandemic on transfer prices

On 31 March 2021, the General Financial Directorate issued information on the effects of the Covid-19 pandemic on transfer prices (the “Information”) pursuant to recommendations of the OECD of December 2020 (the “OECD Guidance”). The General Financial Directorate notes that the OECD Guidance does not involve a special recommendation beyond the currently applicable Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (the “Guidelines”), it rather focuses on the application of the arm’s length principle in the context of the pandemic. Below, we summarise the opinion of the finance administration on certain issues which the General Financial Directorate discusses in more detail in its Information. Therefore, it can be assumed that the finance administration will proceed in line with the Information when examining the periods affected by the pandemic, although this does not constitute a change in the relating legislation. Together with the Information, the General Financial Directorate published the translation of the OECD Guidance into Czech. 

26. 4. 2021