The opening two articles provide a detailed analysis of the new Single Monthly Employer Reporting system and its accompanying legislation. The first article focuses on the practical implications of the new system, the implementation timeline, and recommendations on how to prepare for the change. The following article summarises the related amendments to the Income Tax Act and their expected impact on both employers and individuals, particularly with a view to 2026.
The next article focuses on the new form of business transformation—division by spin-off—and the reached by the Coordination Committee of the Ministry of Finance of the Czech Republic and the Chamber of Tax Advisers of the Czech Republic regarding its tax implications, including the correct determination of the acquisition cost of the share.
In the area of indirect taxes, we focus on two recent judgments of the Court of Justice of the European Union, which may affect the application of VAT to transfer pricing adjustments and factoring fees. The final article looks ahead to planned developments in the field of transfer pricing, including the potential introduction of mandatory transfer pricing documentation and the growing use of data and analytical tools by the tax authorities.
We wish you an inspiring read and every success in navigating the legislative changes that await us in the coming year.
On behalf of the entire Forvis Mazars team, we wish you a peaceful and relaxing Christmas season and a successful year 2026.
As of 1 January 2026, Act No. 323/2025 Coll., on the Single Monthly Employer Reporting (hereinafter “SMER”), will enter into force. The new system significantly changes how payroll data are transmitted to government authorities. It will gradually replace a number of existing forms and reports, thus reducing the administrative burden in terms of the number of filings. However, the volume of reported...
By an amendment to the Act on Transformations of Commercial Companies and Cooperatives, a new form of transformation of business corporations – division by spin-off – was introduced into Czech law effective from 19 July 2024.
The Court of Justice of the European Union (hereinafter as ‘the Court of Justice’) recently ruled on the application of VAT in the case of transfer prices between related parties in its decision C-726/23 Arcomet Towercranes. However, the decision has brought rather uncertainty to the area of VAT on transfer prices.
In its recent decision C-232/24 Kosmiro, the Court of Justice of the European Union (hereinafter as ‘the Court of Justice’) ruled on the VAT treatment of factoring fees. This is an important decision that has an impact on current practice, where remuneration for factoring services is, at least in part, commonly considered to be interest on financing provided, i.e. a financial service exempt from VAT.
In early November, the newly elected government unveiled a draft policy statement, setting out its objectives for the upcoming year. One of these priorities, aimed at ensuring healthy finances, should include measures to reduce the grey economy and streamline tax collection. Alongside the widely debated reintroduction of EET 2.0, the following measures should be implemented:
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