Czech Parliament Approves COVID-19 Package Including Loss Relief and VAT Rate Reduction

On 16 June 2020, the Czech parliament approved a package of tax measures aimed at mitigating the adverse economic effects of the COVID-19 pandemic. The two main measures of the package include the following:

• Companies and individual entrepreneurs are allowed carry back losses up to two years from 2020, which is capped at CZK 30 million; and
• The 10% reduced VAT rate is extended to accommodation services, admission to cultural events and sporting events, admission to sports grounds (including …