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

Outstanding Vacation Days – a reserve or an estimated payable?

Opinions as to the period in which costs of outstanding vacation days should be accounted for and how have changed over time. At first, they were not accounted for at all, then through estimated payables and eventually through the recognition of reserves. As many reporting entities still hesitate how to proceed in accounting for outstanding vacation days, let us remind you of the origin of the doubts and subsequently answer the question. 

17. 4. 2019

On Whose Part Does Gratuitous Income Arise When the Lease and Sub-Lease Agreements are Terminated at the Same Time?

In cases in which the property owner enables the lessee to perform technical improvement on the property and to subsequently depreciate the improvement made, while no compensation is provided upon the lease agreement’s termination, the property owner generates gratuitous income. The property owner is obliged to tax such income as part of his/her tax base. Pursuant to the amendment to the relevant legislation effective from 1 July 2017 it was possible to perform and depreciate such technical improvements both for lessees and any authorised property users (such as sub-lessees). However, the legislation did not provide any guidance on how to treat technical improvement upon the termination of sub-lease agreements. 

6. 3. 2019

GFD’s New Guidance Note on the Binding Assessment of Transfer Pricing and the Method of Determining the Tax Base for Permanent Establishments

On 9 November 2018, a new guidance note, D - 32, of the General Financial Directorate (“GFD”) was published in the Financial Bulletin of the Ministry of Finance on the binding assessment of the pricing method between related parties and the method of determining a tax non-resident’s tax base on activities performed through a permanent establishment (hereinafter jointly as the “binding assessments”). 

27. 11. 2018