Asset Managers that use Liechtenstein or German funds to invest into Czech equities should familiarize themselves with the Czech tax obligations, and ensure the proper registration and timely execution of the tax return filing requirements, since sanctions can be applied in the case of non-compliance (late payment interest, fine for late submission and penalties).
For future investments, structuring advice should be considered to understand the options available to benefit from the Czech double tax treaty network that allows for exemption from such taxation.
Raising tax liabilities from non-residents in this manner is an easy (and politically attractive) approach and is a trend that we expect to see continue as more and more governments seek to recover revenues in the wake of the economic impact of the COVID-19 pandemic.