In November, Czech President Petr Pavel put his signature on a consolidation package that brings forth alterations to a multitude of laws, with a primary focus on taxation. Notable changes encompass the introduction of only two value-added tax rates, set at 12% and 21%. Furthermore, the corporate income tax rate is slated to rise from […]
Did you know that you must pay VAT if you use sponsored advertising on Facebook and Instagram as part of your business. You should submit a VAT return and summary report based on the advertising bills. How do I correctly account for social media advertising? How do I fill out tax forms? And when do […]
A trademark (TM) is a legal instrument that protects your company from competitors. It distinguishes your company from others in the market, and in addition to exclusive rights, a trademark lends legitimacy to your brand. What is the distinction between R(®) and TM(TM)? The letter R (®) is derived from the English term registered and […]
Starting next year, the number of workers and self-employed individuals in the Czech Republic subject to the increased 23% income tax rate will significantly increase. Currently, the elevated tax rate of 23% applies to income exceeding 48 times the average annual salary. The new threshold is planned to be reduced to 36 times. However, as […]
Many entrepreneurs employ one or more cars for their business operations. How should you properly document vehicle operating expenses in your accounting and ensure you receive tax deductions? Furthermore, what responsibilities do entrepreneurs bear when it comes to car usage in their business endeavors? These questions will be addressed in this article. The majority of […]
Assuming the position of a managing director in a limited liability company (jednatel s.r.o) carries significant responsibilities and expectations. Not everyone is qualified for this role. This article aims to clarify the roles and obligations of a managing director and shed light on the compensation they can anticipate. Each LLC (s.r.o) is mandated to have […]
The amendments to the Labor Code have already been implemented, bringing forth several significant modifications affecting both employers and their employees. These changes are specifically tied to Amendment No. 281/2023. However, this is not the comprehensive amendment to the Labor Code, which is still in preparation by the Ministry of Labor and Social Affairs of […]
Spin-off reorganization is one of various methods of company restructuring in the Czech Republic. This is a sort of conversion in which the dividing firm is not liquidated but instead continues to exist. This type of transformation transfers a portion of the assets of the divided firm to the successor company or numerous successor companies. […]
Most entrepreneurs and companies are familiar with the terms “taxpayer” and “identified person.” What other entities are defined by the VAT law? The VAT law not only defines the concepts of VAT taxpayers and identified persons. It also mentions, for example, entities registered for tax purposes, foreign persons, or entities exempt from taxation. Tax-Registered Person […]
Triangular trade is a type of EU trade in which a simplified tax scheme can be used for the supply and acquisition of goods between VAT-registered individuals in various EU member states. The simplified scheme can only be used if all of the legal requirements are met (Article 17 of the VAT Law). A tripartite […]
Most organizations providing services related to virtual assets are legally obligated entities and must be registered. The AML obligations (AML – Anti-Money-Laundering) are outlined in Law No. 253/2008 Coll.
In this article, we explore the primary distinctions between running a business as a sole proprietor (OSVČ) and as a limited liability company (s.r.o.). The choice between these two options is a common dilemma for many entrepreneurs, because each carries its own set of advantages and disadvantages. Entrepreneurs often grapple with the decision of whether […]
The Milostivé léto campaign is back in the Czech Republic till November 30th. People who owe the state money will be allowed to repay it without paying interest, fines, or enforcement fees. How does it work? The government will not charge fines, interest, and enforcement fees if you pay the principal (initial amount of the […]
The DUNS number is a unique nine-digit number that identifies commercial enterprises at a specific location. The DUNS number, which is assigned and managed by Dun & Bradstreet (D&B), is widely used as the standard business identifier. Businesses do not receive or need social security numbers. They can, however, receive a unique nine-digit identification number […]
