News
Committee: correction of tax base for bad debts – knowledge test
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors of the Czech Republic has finalised its discussion paper concerning the ‘knowledge test’, i.e. whether a creditor knew, should, or could have known at the time of a delivery of goods or provision of services that the supply would not be properly paid, and its implication for correcting the VAT base for irrecoverable debts.
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Czech Republic: W-shaped recovery averted in 4Q
The Czech flash GDP for the last quarter of 2020 surprised on the upside, despite the second wave of Covid-19. The Czech economy grew slightly by 0.3% quarter-on-quarter, averting a W-shaped recovery scenario. For the whole of 2020, the domestic economy contracted by 5.6%
Minimum wage in the Czech Republic to be raised again in 2021
The minimum wage for 2021 is set at CZK 15,200 – i.e., CZK 600 more than the year before. The minimum hourly wage will rise to CZK 90.50.
The increase of the minimum wage goes hand in hand with the lowest level of what is known as the guaranteed wage (which represents the lowest wage stipulated with a view to the complexity, arduousness, and professional demands posed by the given job, as per a roster of categories).
Recommendations of the OECD for Transfer Pricing in Relation to the Impacts of the COVID-19 Pandemic
Extraordinary economic conditions brought about by the COVID-19 pandemic and consequent responses of governments in individual countries may bring numerous practical difficulties in applying the arm’s length principle. For this reason, the Organisation for Economic Co-operation and Development (the “OECD”) issued a report on 18 December 2020 containing recommendations for taxpayers and financial administrations how to proceed when applying transfer pricing rules in periods affected by the COVID-19 pandemic.
Czech Economic Outlook: Emerging from the vale of tears
Waiting for vaccine The economy should return to growth this year with the help of widespread vaccination and economic policy stimulus. The pre-crisis GDP level will likely be reached again as we approach 2022.
Strategic Directions for Czech Economic Policy
- Transition to High-Tech Manufacturing and Exports
- The City Campus as Idea Factory
- Government Programs and Processes That Drive Innovation
- Government as a Competitive Advantage, including Digitization
Advocacy Priorities for 2023
Technology, People, Infrastructure
Actions Recommended in Areas:
1. Establishing Policy Objectives for Research.
2. Research Investment and Cooperation. Big Bets (Key Technology Projects).
3. Establishing Databases for Tracking Public Policy Outcomes.
4. Public Procurement as an Innovation Tool.
5. Immigration of STEM Talents.
6. Digitization of Immigration.
7. Adult Reskilling and Upskilling.
8. Digitization of Land Use.
9. Infrastructure Development, including Technology Parks.
Read the documents in English and Czech.
Policy pipeline
In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.
