Czech Republic: EU Anti-Tax Avoidance Directive
The Czech Republic has enacted the EU Anti-Tax Avoidance Directive. It will take effect from 1 April 2019.
As a result of the new enactment, all payments being made abroad which are subject to withholding tax must be reported, even if these payments are exempt from tax or not subject to tax because of the provisions of an applicable income tax treaty. An exception applies for certain payments not exceeding CZK 100,000 a month.
In addition to the new reporting requirements, the Czech Republic has introduced interest restriction rules that are aligned with those in other EU countries. Additional rules have also been introduced in respect of Controlled Foreign Companies, the migration of assets, the taxation of equities and the use of hybrid mismatches.