Log-book 12-1-2020, 3rd Lesson: Nothing is stable in the universe
In my last blog I explained why it is right to go straight for your goal, to keep the course and speed you want, because 1) nothing is as terrible as it looks at first, 2) the sea (and the market) are big and we all fit in there and 3) it is not good to be scared by some crisis on the horizon, because a rushed change of the course will cost you time (= money). If you go directly to your destination, others will make a way. But this has one important condition, which is the need to constantly monitor, measure distances and speed, calculate, evaluate and think.
Record minimum wage increase
From 1 January 2020 the minimum wage increased to CZK 14,600. An increase of CZK 1,250 from the CZK 13,350 valid in 2019 represents the largest increase in history. This is the result of a compromise between trade unions that demanded growth of CZK 1,650 and employers who wanted an increase of maximum CZK 700. Currently, the minimum wage represents 40.5% of the average wage.
What will be the fate of the so-called general reverse charge mechanism?
So called reverse charge mechanism is based on the principle that the obligation to declare value added tax shifts from the supplier to the recipient. This means that on one hand, the provider issues an invoice without value added tax and on the other hand, the recipient is obliged to declare and pay output tax and, at the same time, usually has the right to claim the VAT refund. Such construction avoids money transfers between taxpayers and tax administrator and thus, eliminates the possibility of so-called carousel frauds.
Motor vehicles and road tax obligations in January 2020
Deadline for submission of a Road tax return for the year 2019 is set on the last day of January. The same deadline applies to the payment of a Road tax liability. Motor vehicles operators (in most cases motor vehicles owners) has obligation to submit a road tax return and pay road tax liability for the year 2019 for motor vehicles which were registered, operated and used for business in 2019 in the Czech Republic.
Value of valuable rights in financial statements
Valuable rights ('trademarks') are specific representatives of a group of intangible fixed assets whose useful life ought to be longer than one year and at the same time, the cost of acquiring exceeds the limit set by the entity.
Annual payroll agenda
It’s here. The year is over and that means a very challenging period that annual payroll agenda represents for payroll accountants. The annual payroll agenda isn’t only annual tax reconciliation. It is also the compulsory share of employees with disabilities statement, sending of pension insurance records, annual tax summary statements, and issuing of payroll sheets. Let’s take a look at the compulsory share of employees, and pension insurance records in this article.
Tax news 2020
With the beginning of the year, various news in tax area has traditionally comes up. The article below gives a brief overview of changes in the area of income tax and value added tax effective from 1 January 2020 or expected later in 2020.
Tax obligations of property owners in January 2020
Deadline for submission of a Real Estate Tax return for 2020 is 31 January 2020. Real Estate Tax return shall be submitted only in case that facts decisive for the Real Estate Tax assessment have changed during 2019. Changes of facts decisive the tax assessment are for example an acquisition or sale of a real estate, change in the size or type of land, change in the ground plan of the building, superstructure of another above-ground floor, etc. Status as of 1.1.2020 is decisive for the Real Estate Tax return.