• Type: Publication series
  • Date: 3/11/2013

Czech Republic – Court Aims to Sort Out Compliance Issues with Staffing Agencies 

KPMG in the Czech Republic examines a case before the country’s Supreme Administrative Court concerning the concept of international hiring-out of labor, whereby a Czech entity hires labor from a staffing agency registered abroad (“foreign staffing agency”) and who (the foreign staffing agency, the local branch of a foreign staffing agency or the hiring company) has the duty to pay income tax (and payroll tax) in respect of the hired labor when making payments to the staffing agency. Because there are issues of EU law at stake, the Supreme Administrative Court has decided to request a preliminary ruling from the Court of Justice of the European Union.


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