News
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Remuneration of Statutory representatives
July 24, 2014Law No. 90/2012 Coll. on Commercial Corporations and Cooperatives in § 59 Article 3 regulates the remuneration of Statutory representatives of the company. The law says, that unless the compensation is agreed in the contract for the performance, the performance is free and the statutory representative is entitled to a remuneration only if it will be till the end of June 2014 supported by the general meeting. Law also points out that since 1.1.2014 the executives can´t be remunerated on the basis of the employment contracts.
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New disclosure requirements
April 18, 2014With effect from January 1, 2014 determined the Business Corporation Act No 90/2012 (Zákon o obchodních korporacích) new disclosure requirements not only for joint-stock companies, but also for all companies (without distinguishing the legal form) that are members of a concern and for all companies that have created websites. All companies of all legal forms must publish on their websites the following data: name, address, details of Commercial Register entry and identification number, a declaration of membership of a concern, an expert’s opinion on the share capital evaluation (§ 91), and information on transformations. Joint-stock companies are obliged to publish additionally: information on their financial statements, notice of General meeting (both at least 30 days before the General meeting date), the Annual report, the Report on the guaranteed loans (§ 312), an explanation for the shareholders (§ 358) and counterproposal of shareholders (§ 362).
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Discussion Draft on transfer pricing documentation
March 12, 2014OECD has released for comment the draft on changes in transfer pricing documentation rules and reporting obligation of companies. The draft proposes, among others, the establishment of a compulsory documentation, the so- called „Country by Country Reporting“, that could provide more detailed overview of the group tax position. Required information in the transfer pricing documentation may include the information on profit before tax or received and paid interest. The approval of the revised form of documentation is not expected until early 2015 and the implementation into Czech legislation may occur even later. It is also not clear which criteria will be set by Czech tax administration and what sanctions will be threatened in the event of non-issuance of the compulsory documentation. For more information see http://www.oecd.org/ctp/transfer-pricing/white-paper-transfer-pricing-documentation.pdf.
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The new investment incentives regulation from July 1, 2014
December 11, 2013In 2014 will come into force new legal rules for the award of regional aid. The main change is the limitation of public support for investment incentives issued as of 1 July 2014 to a maximum of 25% of eligible costs. This limitation applies to large companies (as defined by the EU – number of employees more than 250, an annual turnover over 50 Mio. EUR or a balance sheet total over 43 Mio. EUR). If the company plans to take advantage of investment incentives under the current conditions, it is necessary to submit the plan to the “Agency CzechInvest” by February 2014.
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Changes in payment transactions in the EU valid from February 1, 2014
October 21, 2013As of February 1, 2014 come into effect changes of internal and international debit payments and payments in EUR made within and across the borders of EU Member States and non-EU countries Iceland, Norway, Liechtenstein, Monaco and Switzerland. The project called Single European Payments Area (SEPA) establishes rules for the removal of the existing problems in the existing payment system (especially high bank fees and long clearing times).
In the scope of SEPA do not fall:- payment transactions carried out between payment service providers
- large payments
- transactions through a payments with credit cards including cash withdrawals
- payments by mobile phone
Another change in EU payments is the obligatory use of the bank account number in the IBAN format instead of today used national bank account BBAN. For more information, see:
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Duties of incorporated companies and shareholders in conjunction with the legalization of the business corporations act
May 24, 2013From 1.1.2014 comes into force the Business Corporations Act. According to this act must be every bearer share registered at the Central Securities Depository or physically deposited in the bank (immobilized securities). Another option, which the law allows, is the transformation of bearer securities into registered shares. This transformation is associated with the change of the Company’s statutes and with additional obligations of Incorporated Companies and Shareholders specified in the Act. The complete version of the Act is available on http://www.psp.cz/sqw/sbirka.sqw?O=6&T=363.
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Amendment to the Commercial Code determines maximum period for due date of invoices
April 19, 2013The Amendment to the Commercial Code determines a new period of 30 days for due date of invoices as of the end of March 2013. Parties can agree on prolonging such period to 60 days. These provisions were transformed from the European directive 2011/7/EU to the Czech law.
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Easier rules for transfer pricing
January 21, 2013As of January, 1, 2012 a new direction published by Tax Authority has been in force. It focuses on services with low added value provided among related parties. The direction includes especially administrative, financial and consulting services whose total amount doesn’t exceed 10% of supplier’s turnover as well as 50 Mio CZK, and 20% of operational costs and 50 Mio CZK as well of the purchaser. The aim of the directive is to ease the administrative burden when proving settings of transfer pricing concerning above mentioned services.
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Bond amendment effective as of August 1, 2012
December 20, 2012Individuals are newly approved to emit bonds. Up to now only legal persons were authorized. In addition, the permission of Czech National Bank won't be required anymore.
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New electronic Business Register starts as of March 31, 2012
April 13, 2012From the March 31,2012 the Business Register starts a new application which will provide public entries about businesses electronically on the Internet. All data published will be binding and users will have an opportunity to change their data thanks to an interactive form. Furthermore, users can download the original of electronical Business Register statement in PDF for free.