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Tax 

In Brief from International Taxation [September 2020]

Since 1 September 2020 The Czech republic has implemented MLI rules to Tax Treaties with Australia and Canada. The European Commission published the Study on EU-28 2018 VAT Gap, the largest VAT Gap was observed in Romania. Latvia and Romania have prolongation for the VAT registration threshold for small businesses. The deduction of Interest Paid to Non-Cooperative Jurisdictions will be limited in Sweden from 2021. Tax Relief for Polish Residents Working Abroad will be probably abolished. The leaseback agreements have guidelines for correct Tax Treatment in Slovenia. 

23. 9. 2020
Law 

Employees in Identical Positions Do Not Have to Earn the Same Salary, They Must Receive a Fair Pay, Says Pavel Bejšovec

Employees in identical positions must earn the same salaries regardless of regional differences in individual regions of the Czech Republic, such is the predominant interpretation of the recent ruling of the Supreme Court. Pavel Bejšovec, a lawyer working for Deloitte Legal, points out that the entire issue is more complicated: “It is not necessary to see the situation in absolute terms and automatically remunerate all employees in an identical position with the same salaries. Differences in remuneration are possible, if the employer is able to justify the reasons for the differences in an adequate manner and if these differences are based on clearly set and fair rules.” 

23. 9. 2020
Tax 

Is the legislative process of implementing the digital services tax finally coming to an end?

Almost three months have passed since the last development in the legislative process of implementing the digital services tax. On 10 June 2020, the parliamentary Committee on the Budget released a resolution; in it, the Committee recommends that the Chamber of Deputies pass the bill in the second hearing, without comments and in the scope of the motion to amend, which reduces the rate of the digital services tax from 7% to 5%. 

21. 9. 2020