Double taxation treaties 

A new double taxation treaty between the Czech Republic and Montenegro came into effect on January 30, 2025. The treaty will be applied in the area of withholding taxes on income paid or credited from January 1, 2026, onwards. For other income taxes, it will apply to income related to taxable periods beginning January 1, 2026. This agreement replaces the previous double taxation avoidance agreement between the Czech Republic, Serbia, and Montenegro, concluded in 2004. The previous agreement will continue to be applicable only in relation to Serbia. 

In February, the first round of negotiations for a new double taxation treaty between the Czech Republic and Gabon took place. This bilateral negotiation was renewed after more than 10 years, and updates to the previously discussed text of the agreement are being prepared. 

European Union 

Uncooperative jurisdictions list remains unchanged 

The Economic and Financial Affairs Council (ECOFIN) decided that the current list of non-cooperative jurisdictions in tax matters remains unchanged. The current list of non-cooperative jurisdictions is available here. 

Legislative developments on the modification of DAC 9 Directive 

The European Parliament’s plenary adopted a position on the amendment of the Directive on Administrative Cooperation in tax matters (“DAC 9”). The aim of the amendment is to simplify the reporting process and reduce the administrative burden on taxpayers from multinational companies based on the Minimum Taxation Directive (“Pillar 2”). 

Due to the technical nature of the DAC 9 proposal and the urgency of adopting this amendment, the European Parliament’s position contains no amendments. 

European Commission Tax Program for 2025 

The European Commission has presented its work program for 2025 titled “Moving Forward together: A Bolder, Simpler, Faster Union”. 

In the area of direct taxation, the Commission plans to: 

• Complete the evaluation of the Anti-tax avoidance directive (ATAD); withdraw the proposal to amend the Directive on the common system of taxation applicable to interest and royalty payments between associated companies of EU member states and the proposal for the Directive on cooperation in tax matters (this proposal has been marked as outdated, and a completely new proposal will be prepared); 
•  Keep the amendment to DAC 9 Directive (exchange of information in tax matters) in the legislative process, and noteworthy proposals include the BEFIT Directive (common system for calculating the tax base for large corporate groups within the EU), DEBRA (tax incentives for equity financing of companies), Unshell (rules to prevent misuse of so-called “shell” companies for tax purposes), and the directives related to the common system of digital services tax and exchange of information on financial transaction tax. 

The work program is complemented by a declaration on implementation and simplification that outlines how the Commission plans to reduce administrative burden and simplify EU rules. However, no specific plan regarding direct taxation is mentioned. For more information, visit our website. 

Other international news 

OECD proposes changes in capital gains taxation 

A recent OECD report highlights inequalities in the current capital gains tax system within member states. Lower rates or tax exemptions for capital gains compared to ordinary income, according to the report, favor wealthier individuals, promote tax optimization, and limit the revenues of state budgets. Special tax reliefs for real estate also minimally increase housing availability and may lead to unwanted price hikes in the real estate market. 

Consequently, the OECD is exploring alternative approaches, such as taxing capital gains upon realization, introducing deferred taxation, or considering gains as realized in certain circumstances like death or emigration. Over the coming months, the OECD will continue collecting data, evaluating possible reforms, and analyzing how capital gains taxation affects other tax systems, including corporate income taxes and property taxes.