As we stated in the last news, this information letter will, among other things, discuss in more detail the offenses and other sanctions introduced by the new Act on the Registration of Beneficial Owners, which enters into effect on 1.6.2021.
First of all, it is necessary to mention the offense committed by the registrant (i.e. the person who has the beneficial owner), if this person does not ensure the entry of any data in the register of beneficial owners even at the request of the court.
Furthermore, iRead more
On 3 February 2021, Act No. 37/2021 Coll., The Act on Beneficial Owners, was published in the Collection of Laws, which will enter into effect on 1 June 2021. This act responds to Directive 2018/843 of the European Parliament and of the Council of the EU (V. AML Directive) of 30 May 2018.
The aim of this act is to transpose into the national law some of the new requirements concerning beneficial owners, which are contained in the V. AML Directive.
This new legislation enshrines a more precise definitionRead more
On September 9, 2020, a judgment of the grand chamber of the civil law and commercial law collegium of the Supreme Court was issued in file No. 31 Cdo 684/2020. This judgment among other thing reacts on preceding decision of Supreme Court of 1 October, .2018, No. 28 Cdo 5711/2017 concerning of interpretation provision S. 1987 Subs. 2 Civil Code. Given different juridical opinions of different chambers of the Supreme Court a question arose, whether is it possible to judge claim as uncertain or indefinite onlRead more
At the end of the last year Czech Supreme Court issued decision sending a clear message that the possibility of an employer to withdraw from a non-competition clause concluded with the employee shall remain restrictive.
Judgement issued under file No. 21 Cdo 4779/2018 of 5 November 2020.
According to the Labour Code the employer may withdraw from a non-competition clause only during the term of the employee’s employment law relationship. In the past the Supreme Court has already declared that the withdrRead more
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 amounRead more
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. ThiRead more
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. ARead more
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 taxRead more
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 alRead more
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 alsRead more