1. Act on Investment Companies and Investment Funds
The most important changes made by amendment to the Act of 2021 are compared to the previous year below.
Investment fund with legal personality
The Act was broadened by a new provision concerning an investment fund’s board of directors, whereby the investment fund’s board of directors with legal personality may be only one member, and its member can only be a legal entity, provided that the investment fund with legal personality is not a self-governing investment fund.
Joint stock company with variable share capital
The statutory director of a joint-stock company with variable share capital, which is an investment fund, no longer has full management and therefore does not determine the basic focus of business management. The general meeting of a joint-stock company with variable share capital now does not elect or dismiss the statutory director nor approve his/ her contracts or changes to that contract. Furthermore, the provision authorizing the legal entity to become a statutory director was removed if the conditions for membership of the Board of Directors are met.
In the event that the same person wishes to fill more than one senior position in the same fund or company, a new consent from the Czech National Bank to perform another senior position is not required if the Czech National Bank has already granted one permit.
2. Green Tax
Reduction of 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 yield percentage is thus to be reduced from 8.4% to 6.3%. The main reason was the disparity between the support of solar power plants and their share in electricity generation, as they account for only 2%.
Electricity tax
Taxpayers are obliged to pay a tax on electricity from renewable sources from 1 January 2016, when the law that abolished the exemption of environmentally friendly electricity from the electricity tax came into force. The obligation to pay an electricity tax applies to production plants with an installed capacity of over 30 kWp whose production meets their consumption. Technological consumption is not subject to the tax.
A tax return must be filed monthly. It is necessary to register for the tax at the locally responsible customs office, based on the address of the manufacturer’s registered office. However, if the manufacturer is not a payer by law, he/she is not obliged to register; if registered, he/ she must file a zero tax return on a monthly basis.
Subsidies
New projects are no longer eligible for operational subsidies but are entitled to other forms of assistance. Above all, they can apply for an investment grant 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 previous owner must annul the original license. Unless the technical conditions under which the original license was granted change, the amount of support remains the same. The new operator loses the right to said support when the previous license expires and, at the same time, a new one is not issued.
If you wish to discuss these topics, please contact: WTS Alfery s.r.o., Prague
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