Tax and legal news

An amendment to the Social Security Act brings two changes affecting the Income Tax Act.

On 7 July 2021, the parliamentary meeting schedule included the third reading of the bill on tax on digital services – including almost twenty amendments. However, Parliament did not manage to debate the bill; there will be another chance to debate the matter in September 2021.

On 1 July 2021, about 130 countries, including the Czech Republic, issued a joint statement on the two-pillar policy, under the auspices of the OECD, that will be the base for negotiations in the field of international taxation.

An amendment to the Employment Act that came into effect of 7 July 2021 introduces an option now available to employers in the form of short-term work – “kurzarbeit”. The government may approve a “kurzarbeit” regime in the event of a natural disaster, cyberattack, pandemic or other extraordinary situation.

The concept of a trust was introduced into the Czech legal system in 2014; however, unlike the situation in other countries, it is not a commonly used legal instrument in the Czech Republic.

In June 2021 we will be celebrating our 15th anniversary on the Czech and international tax markets.