Amendment to the Income Taxes Act


Since 1. 1. 2021, changes came into effect to the Income Taxes Act.

One of the important changes in this so-called „Tax package“ is the introduction of the flat rate tax. Self-employed persons can log in the flat-rate tax regime, under the conditions laid down by this Act, which means that they pay a constant flat-rate amount of 5,469 CZK/month (be valid for year 2021) for their income of up to 1 million CZK. This amount is created by income tax in the amount of 100 CZK/month, social insurance in the amoun

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New Act on Waste


On 1/1/2021 has come into effect Act No. 541/2020 Coll., new waste act.

There were several reasons for adopting this legislation. Due to the fact that the old legal regulation has already been amended many times in order to comply with EU regulations, the Act became confusing, especially in the area of product take-back duty. Furthermore, the old legislation no longer complied with the legislative requirements for the regulation of offenses.

Now the „waste“ agenda is divided into several partial acts. Thi

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Czech LEX COVID - prolongation in the field of corporate law to 30.06.2021


The Act on Certain Measures to Mitigate the Impact of the Coronavirus Epidemic (the so-called LEX COVID) in the field of justice and corporates entered in the Czech Republic in force on 24 April 2020. One of the issues to be regulated was how to convene general meetings in accordance with the restrictive measures and how to take key decisions.

Even prior to the first lockdown in spring 2020, it was possible for general meetings and statutory or supervisory bodies of companies to adopt decisions remotely. A

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Amendment to Act Tax Regulations – change tax control and amount of default interest


Amendment to Act Tax Regulations will come into effect on 1/1/2021. This amendment brings changes to tax control.

Expected result is simplification of whole tax control process. Part of this simplification is the possibility to start the process by delivering a notice of start of the tax control. In line with this change it will be possible for the whole process of tax control to be completed through correspondence as opposed to the current requirement of presence of the tax subject (e.g. in offices of tax

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The amendment of the representation in elected body of legal persons


With the start of the new year an upcoming amendment of Business Corporations Act will come into effect.

This amendment contains many changes. One of the most important ones is a change to membership in elected bodies of legal persons. Current system allows juridical person to represent another juridical person in supervisory or statutory organs of corporate entities. This means, that juridical person could appoint natural person to represent them or appoint a member of its own statutory body, which can al

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Changes in thresholds of damage caused for classification of criminal offenses


Amendment to Criminal Code of the Czech Republic (Trestní zákoník ČR), effective from 1st of October 2020, changes the thresholds of damage caused for classification of criminal offenses.

Newly property crimes which cause 10 000 CZK or more worth of damage are classified as criminal offenses as opposed to previous 5 000 CZK threshold. Property crimes, which cause less than 10 000 CZK worth of damage, are subject to infraction proceedings. Thresholds for determination of severity of property crimes were als

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BREXIT – Getting ready for the end of the transition period


The United Kingdom of Great Britain and Northern Ireland (‘United Kingdom’ or ‘UK’) left the European Union (‘EU’) and the European Atomic Energy Community (‘Euratom’) – hereafter referred together as ‘Union’ – on 1 February 2020. The Withdrawal Agreement concluded between the Union and the United Kingdom entered into force on that date, securing the United Kingdom’s orderly departure, and providing legal certainty in important areas, including citizens’ rights, the financial settlement and avoiding a hard

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Cancellation of the Real Estate Acquisition tax in the Czech Republic


Real estate acquisition tax equaled to 4% of the total purchase price. In practice, this means that the buyer does not have to pay real estate acquisition tax anymore. Although in the Collection of Laws published on 25/09/2020, the cancellation of this tax applies retroactively – the tax obligation shall not apply for ownership entries registered in the Land Register since December 2019. 

There is also a change of the time test for exemption from the personal income tax of income from the sale of real esta

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Planned changes in road transport law


Following changes in road transport law (zákon o provozu na pozemních komunikacích) were adopted by the Government of the Czech Republic on August 17, 2020.

The most significant change is creation of a new category „beginner driver“. A driver will belong into this category for the first two years starting from receipt of the driver´s licence. The Czech Republic uses points-based system for traffic offences, in which driver loses their driver´s license once they acquire 12 points. Beginner drivers have this

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Remuneration reflecting regionally different social and economic conditions of living


The Czech Supreme Court decided on 20 July 2020 about an issue whether different social and economic conditions resulting from the region / locality of the place of workcan be a rightful reason for a variation in wages of the employees working for the same employer. And the answer is NO because such an unequal treatment does not comply with the legal principle “the same salary/wage to all employees by the same employer for the same work or work of the same value”.

 Neither larger jobs offer on the labour m

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