Blog

Dear Readers,

Please find below our short news for March 2024:

• The Financial Administration published a number of information on their website:
  • A summary of information about changes in the Income Tax Act in relation to individual income tax return for 2023 and an advice with regard to mistakes to be avoided in preparing a return. More information is available here.
  • An advice on the mode of eliminating unrealised exchange rate gains and losses pursuant to Sections 23i and 23j of the Income Tax Act. You can read more here.
  • The Financial Administration informs that it performed 570 inspection acts in the area of prices agreed between related parties (so-called transfer pricing) in 2023, the result being an increase in the tax base by CZK 5.8 billion. You can find more information here.
     
• Draft amendment to the Act on Investment Companies and Investment Funds is ready for the 3rd reading. The draft, under Parliamentary Press No. 570, is included in the agenda of the Chamber of Deputies’ meeting to be held from 9 April 2024.
   
• An amendment to the Act on Primary Registers, which has been in the Senate since 1 March, proposes the introduction of a Representation Authorisation Information System. The information system should be a database of templates and a register of granted powers of attorney. Access to the granted representation authorisations will be provided to authorities that will be able to verify the existence and validity of powers of attorney. Online entry in the system should be possible e.g. by logging in through a data box, the Citizen ID, or physically at CzechPoint offices. The Representation Authorisation Information System is intended to provide an alternative/digitalisation, rather than to replace traditional powers of attorney as we have known them, analogically to the eDoklady (eID) app. This amendment is expected to be passed in April and the system should be launched on 1 July 2024.
   
• Effective from January 2025, it will no longer be possible to pay administrative and judicial charges through stamps. Unused and undamaged stamps can be sold at selected branches of the Czech Post until the end of 2024 (you can find a list of those branches here); the Czech Post charges a fee under the effective pricelist for the repurchase. It will still be possible to pay administrative and judicial charges by card, in cash or via wire transfer. The stamps’ cancellation has been brought along by the consolidation package.
   
• The Czech Social Security Administration Authority (the “CSSAA”) launched a new service of the CSSAA’s ePortál (e-portal), specifically issuing of the A1 Form upon an online application for specification of applicable social security laws. The A1 Form is used by employees and self-employed individuals who commonly migrate for the work purposes across the EU. This form can be used abroad to prove that social security and healthcare insurance contributions are paid in the Czech Republic. You can get more information and find the application on the CSSAA’s website here.
   
• The deadline for entering into the elimination-of-exchange-rate-gains-and-losses mode for the taxation period starting on 1 January 2024 expired at the end of March.

Marek Švanda
svanda@clarksonhyde.cz