1. Law on investment companies and investment funds

The most significant changes brought about by the 2021 law amendment are compared to the previous year below.

Investment fund with legal personality

The law has been extended by a new provision concerning the board of directors of an investment fund, according to which the board of directors of the investment fund with legal personality may only consist of one member , and its member can only be a legal person, provided that the investment fund with legal personality is not an autonomous investment fund.

Open-ended joint-stock company

The statutory director of a joint stock company with variable capital, which is an investment fund, no longer has full management and therefore does not determine the fundamental orientation of the management of the company. The general meeting of a joint-stock company with variable capital no longer elects or dismisses the statutory director or approves his contracts or amendments to these contracts. Furthermore, the provision authorizing the legal person to become a statutory director has been removed if the conditions for membership of the Board of Directors are met.

In case the same person wishes to hold more than one management position in the same fund or company, a new consent from the Czech National Bank to exercise another management position is not required if the Czech National Bank has already granted a permit.

2. Green tax

Reduced support for solar power plants

Thanks to the photovoltaic boom of 2009 and 2010, purchase prices have increased several times over a period of time. For this reason, the government of the Czech Republic has decided to reduce support for solar power plants to a minimum level within the range set by the European Commission. The percentage yield is thus reduced from 8.4% to 6.3%. The main reason was the gap between support for solar power plants and their share in electricity production, since they represent only 2%.

Electricity tax

Taxpayers are required to pay a tax on electricity produced from renewable sources from January 1, 2016, the date on which the law that removed the electricity tax exemption for environmentally friendly electricity environment entered into force. The obligation to pay a tax on electricity applies to production facilities with an installed capacity of more than 30 kWp whose production satisfies their consumption. Technology consumption is not subject to the tax.

A tax return must be filed monthly. It is necessary to register for the tax with the relevant local customs office, based on the address of the manufacturer’s head office. However, if the manufacturer is not a payer under the law, it is not required to register; if he is registered, he must file a monthly zero tax return.

Subsidies

New projects are no longer eligible for operating grants but are entitled to other forms of aid. Above all, they can apply for investment assistance under the New Green Savings Program. When transferring ownership of a photovoltaic power plant, the new operator must apply for a new license and the former owner must cancel the original license. Unless the technical terms under which the original license was granted change, the amount of support remains the same. The new operator loses the right to said assistance when the previous license expires and, at the same time, a new one is not issued.