• Service: Tax, Global Indirect Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/15/2013

Czech Republic - Pending changes to company law, travel expenses 

March 15:   Pending legislative changes in the Czech Republic would amend the company law to limit abuse of anonymous corporate ownership structures, and thus address certain non-transparent uses of corporate funds.

The pending changes would be intended to allow for transparency of joint-stock companies, to provide that if a joint-stock company with documentary bearer shares must bring the shares into line with new rules by the end of 2013, or all certificated bearer shares would be viewed as certificated registered shares.

Limited liability company rules

The rules concerning limited liability companies have been expanded and liberalized. Among the changes,:

  • Rules establish a minimum contribution amount for registered capital.
  • The director’s consent is sufficient for voluntary contributions outside the registered capital.
  • A limited liability company may serve as a director (i.e., member of a statutory body) of another corporation.

Travel expenses

Another new measure addresses travel expense compensation when employers temporarily assign their employees to another, foreign employer. Under the provision, employees temporarily assigned to a place of work outside the Czech Republic are only entitled to travel expense compensation for the days of their outward journey from the Czech Republic and their return journey.

Read a March 2013 report [PDF 388 KB] prepared by the KPMG member firm in the Czech Republic: Financial Update (March 2013)

VAT changes

Beginning 1 April 2013, new measures are effective concerning the recipient of a taxable supply’s liability for value added tax (VAT). In March 2013, the General Directorate of Finance issued guidance concerning this new rule, and with respect to a requirement to provide notice of tax account numbers.

Read a March 2013 report (Czech) [PDF 84 KB] prepared by the KPMG member firm in the Czech Republic: Mimořádné finanční aktuality

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