Transformation Act01/05/08 / cata_tax-news
Act on transformation of commercial companies and cooperatives (“Transformation Act”) takes effect from 1 July 2008. This new, comprehensive legislation applicable to commercial companies and cooperatives shall replace and supersede current provisions of the Commercial Code.
Due to adoption of the Transformation Act, another Act amending certain other acts also takes effect from 1 July 2008. This new amending Act shall impact the accounting and tax laws referred to below.
An amendment to the Accounting Act responds to the new legislation applicable to the said transformations and provides greater detail on how to determine the beginning of the accounting period for companies established through spin-offs.
An amendment to the Tax and Fee Administration Act introduces the obligation to request the tax authority for consent on transformation of a commercial company or cooperative. Such consent will have to be submitted to the Commercial Register.
An amendment to the Income Tax Act addresses cross-border mergers, evaluation of contributions involving both tangible and intangible assets from abroad to the Czech Republic and relocation of tangible and intangible assets from abroad to permanent establishments in the Czech Republic.
Cross-border mergers have resulted in an amendment to the Value Added Tax Act that applies the duty to become a VAT payer in the event of a cross-border merger.