Income Tax

Tax 

What is the deadline for filing the income tax return for 2020?

As the new year arrives, the time for the preparation of financial statements and the income tax return for the past taxation period comes. This year, it is necessary to pay increased attention to the time limit for filing the tax return as the amendment to the Tax Code, which took effect on 1 January 2021, significantly rephrased the existing rules. According to the transitional provisions and the information of the Financial Administration of the Czech Republic, the new rules apply already to the 2020 taxation period. 

10. 2. 2021
Tax 

Loss of investment incentives in relation to transfer pricing

The Income Taxes Act (ITA), as amended until 30 April 2015 (“the old wording of the ITA”), specified that if the corporate income tax payer increased the tax base by conducting related party transactions in a way that did not comply with the economic principles of ordinary business relations, it would denote a breach of conditions for drawing investment incentives in the form of tax relief, leading to a subsequent loss of investment incentives. This provision was amended with effect from 1 May 2015 (“the new wording of the ITA”): currently, in the case of a breach of the aforementioned conditions, the loss of investment incentives will not be complete and will not affect all periods in which the tax relief was or could have been claimed. 

22. 10. 2020
Tax 

Tax News – Summer 2020

We have already informed you in our previous articles about the forthcoming changes, which include so-called implementation package amending several legal regulations due to the implementation of EU tax laws. In terms of taxes, the implementation package of the Ministry of Finance of the Czech Republic slightly amends the Income Taxes Act, brings about a major change in cross-border transactions in the VAT Act and also introduces the long-announced obligation to report cross-border arrangements in the Act on International Cooperation in Tax Administration. 

17. 9. 2020
Tax 

The statute of limitations cannot exceed ten years, not even in the case of tax loss

In May, we informed you about a ground-breaking ruling of the Supreme Administrative Court which rejected the tax administration’s practice of extending the statute of limitations by so-called tax loss chaining. In its latest ruling, the Supreme Administrative Court refers to this case law and comments on the rules of the statute of limitations for the taxation period in which the tax loss arose or could have been utilised. 

17. 9. 2020