Database
Establishment restrictions
CZECH REPUBLIC
Since 1999
Chapter Business mobility |
Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Act No. 326/1999 Coll. on the Residence of Aliens in the Territory of the Czech Republic
For independent service suppliers (ISS), there is a limitation of stay of six months, but a longer long-term residence permit can be obtained after that period.
Coverage Horizontal
Sources
- OECD STRI: http://www.mvcr.cz/docDetail.aspx?docid=21559262&docType=ART&chnum=3
- http://www.mvcr.cz/mvcren/article/third-country-nationals-long-term-residence.aspx?q=Y2hudW09OQ%3d%3d
- http://portal.mpsv.cz/sz/zahr_zam/zz_zamest_cizincu/zz_zvlastni
Establishment restrictions
CZECH REPUBLIC
Reported in 2016
Chapter Competition policy |
Sub-chapter Competition
Anti-competitive mobile network sharing
The EU's antitrust authority has launched an investigation into anti-competitive network sharing in the Czech Republic. The Commission will examine whether cooperation between network providers restricts competition and thereby harms innovation in breach of EU antitrust rules.
Coverage Telecommunication sector
Sources
- http://www.internationallawoffice.com/Newsletters/Competition-Antitrust/Czech-Republic/Schoenherr-Attorneys-at-Law/Anti-competitive-agreements-in-telecoms-sector
- europa.eu/rapid/press-release_IP-16-3539_en.pdf
Establishment restrictions
CZECH REPUBLIC
Reported in 2015
Chapter Competition policy |
Sub-chapter Competition
Access to major supplier network
It is reported that several operators in Member States of the European Union, including France, Germany and the Czech Republic, are charging higher rates for the termination of international traffic originating from outside the EU than for international traffic between sovereign states inside the EU. This has been identified as a barrier by the USTR 2015 Section 1377 Review On Compliance with Telecommunications Trade Agreements.
Coverage Telecommunication sector
Establishment restrictions
CZECH REPUBLIC
Chapter Intellectual Property Rights |
Sub-chapter Copyright
Copyright inadequately enforced
Despite the business software piracy rates are decreasing in the Czech Republic, the entertainment software industry reports that the level of piracy for its products continues to be problematic, with delays in criminal enforcement proceedings.
Coverage Software sector
Establishment restrictions
CZECH REPUBLIC
Since 2000
Chapter Intellectual Property Rights |
Sub-chapter Copyright
Directive 2001/29/EC (The Copyright Directive)
Czech Republic Copyright Act
Czech Republic Copyright Act
In the European Union, there is no general principle for the use of copyright protected material comparable to the fair use/fair dealing principle in the US. Directive 2001/29/EC defines an optional, but exhaustive set of limitations from the author´s exclusive rights under the control of the “three-step test”. This is a clause in the Berne Convention that establishes three cumulative conditions to the limitations and exceptions of a copyright holder’s rights. The Directive has been transposed by Member States with significant freedom.
The Czech Republic Copyright Act provides several exceptions and limitations. The three-step-test also applies.
The Czech Republic Copyright Act provides several exceptions and limitations. The three-step-test also applies.
Coverage Horizontal
Fiscal Restrictions
CZECH REPUBLIC
Reported in 2017
Chapter Public Procurement |
Sub-chapter Preferential purchase schemes covering digital products and services
Limitation to foreign participation
It is reported that the right of access to public procurement is limited to regional trade agreement partners and members of the WTO’s Government Procurement Agreement.
Coverage Horizontal
Fiscal Restrictions
CZECH REPUBLIC
Reported in 2014
Chapter Public Procurement |
Sub-chapter Preferential purchase schemes covering digital products and services
Limitation to foreign participation
Lack of transparency throughout the procurement process is reported as a significant obstacle for foreign companies to participate in public tendering. While the Czech government has publicly stated its commitment to fair, transparent tenders, it has been reported that high-profile tenders were intransparent.
In 2012, the Czech government adopted a major public procurement reform bill which addressed some transparency and corruption concerns. The law requires more than one bidder for all procurements and publication of tender specifications and requires bidders to disclose more of their ownership structure in the bidding process. However, it is reported that the law maintains loopholes that could permit bidders to subcontract to anonymously held companies.
In 2012, the Czech government adopted a major public procurement reform bill which addressed some transparency and corruption concerns. The law requires more than one bidder for all procurements and publication of tender specifications and requires bidders to disclose more of their ownership structure in the bidding process. However, it is reported that the law maintains loopholes that could permit bidders to subcontract to anonymously held companies.
Coverage Horizontal
Sources
- USTR, 2014 National Trade Estimate Report on Foreign Trade Barriers:
https://ustr.gov/sites/default/files/2014%20NTE%20Report%20on%20FTB.pdf - US Commercial Service, "Country Commercial Guide: Czech Republic", 2014
Fiscal Restrictions
CZECH REPUBLIC
Since January 2015
Chapter Taxation & Subsidies |
Sub-chapter Discriminatory tax regime on online services
Council Implementing Regulation (EU) No. 1042/2013 amending Implementing Regulation (EU) No. 282/2011, Mini One-Stop Shop (MOSS)
The European Regulation No. 1042/2013 amending the Council Implementing Regulation No. 282/2011, declares that from January 2015, all supplies of telecommunications, broadcasting and electronic services will be taxable at the place where the customer belongs. These include, inter alia:
- images or text, such as photos, screensavers, e-books and other digitised documents e.g. PDF files;
- music, films and games, including games of chance and gambling games, and of programmes on demand;
- online magazines website supply or web hosting services distance maintenance of programmes and equipment;
- supplies of software and software updates advertising space on a website.
Both EU and non-EU suppliers have to register for VAT purposes and comply with the relevant obligations of the Member State where the customer is established, has his/her permanent address or usually resides. This may be burdensome as there are 81 VAT rates across the 28 EU countries and the rates may vary between 3% (Luxembourg) to 27% (Hungary) across member states. Furthermore, member states impose varying thresholds at which companies must begin paying VAT, ranging from EUR 0 to EUR 60,000.
As an alternative to obtaining multiple VAT registrations in each Member State where a supplier has a customer, affected suppliers may be able to opt to account for VAT across the EU via a a web-portal in the Member State in which they are identified. Hence, the system, known as the Mini One-Stop Shop (MOSS) scheme, allows taxable persons to avoid registering in each Member State of consumption.
- images or text, such as photos, screensavers, e-books and other digitised documents e.g. PDF files;
- music, films and games, including games of chance and gambling games, and of programmes on demand;
- online magazines website supply or web hosting services distance maintenance of programmes and equipment;
- supplies of software and software updates advertising space on a website.
Both EU and non-EU suppliers have to register for VAT purposes and comply with the relevant obligations of the Member State where the customer is established, has his/her permanent address or usually resides. This may be burdensome as there are 81 VAT rates across the 28 EU countries and the rates may vary between 3% (Luxembourg) to 27% (Hungary) across member states. Furthermore, member states impose varying thresholds at which companies must begin paying VAT, ranging from EUR 0 to EUR 60,000.
As an alternative to obtaining multiple VAT registrations in each Member State where a supplier has a customer, affected suppliers may be able to opt to account for VAT across the EU via a a web-portal in the Member State in which they are identified. Hence, the system, known as the Mini One-Stop Shop (MOSS) scheme, allows taxable persons to avoid registering in each Member State of consumption.
Coverage B2C suppliers of telecommunications, broadcasting and electronically supplied services
Sources
- http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/telecom/one-stop-shop-guidelines_en.pdf
http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/telecom/explanatory_notes_2015_en.pdf - http://euvataction.org/key-facts/#key_services
http://qz.com/348188/why-some-online-stores-have-given-up-on-european-customers/ - https://www.vatlive.com/eu-vat-rules/eu-vat-number-registration/vat-registration-threshold/
https://www.vatlive.com/eu-vat-rules/distance-selling/distance-selling-eu-vat-thresholds/?sessionId=1524658660305&referrer=https%3A%2F%2Fwww.google.be%2F&lastReferrer=www.vatlive.com
Fiscal Restrictions
CZECH REPUBLIC
Reported in 2013
Chapter Taxation & Subsidies |
Sub-chapter Discriminatory tax regime on digital goods and products
Directive 2001/29 (EU Copyright Directive)
Law No. 121/2000 Coll. of 7 April 2000 on Copyright, Rights Related to Copyright and on the Amendment of Certain Laws (Copyright Act)
Law No. 121/2000 Coll. of 7 April 2000 on Copyright, Rights Related to Copyright and on the Amendment of Certain Laws (Copyright Act)
The EU Copyright Directive allows “fair compensation” for copyright owners. As a result, several Member States have imposed national levy systems.
In Czech Republic, remuneration is collected through copyright levies on media and/or equipment. The following rates apply:
- Minidiscs: EUR 0.081.
- CD-R: EUR 0.008.
- CD-RW: EUR 0.041.
- DVD-R: EUR 0.023.
- DVD-RW: EUR 0.113.
- Memory card, flash disc: EUR 0.031 max. EUR 1.840 per 1GB.
- Memory card, flash disc: EUR 0.031 max. EUR 1.840 per 1GB.
- External HDD: Up to 1TB EUR 0.003 per 1GB // Over 1TB EUR 3.356 + EUR 0.002 per 1GB.
The following levies apply to devices:
- DVD writer: 1.74%
- Memory card writer: 1.59%.
- HDD (internal only): 1.74%.
- Audio device without radio: 1.50%.
- Audio device with radio: 0.75%.
- Video device without TV: 1.80%.
- Video device with TV: 0.90%.
- E-book: 3.00%.
In Czech Republic, remuneration is collected through copyright levies on media and/or equipment. The following rates apply:
- Minidiscs: EUR 0.081.
- CD-R: EUR 0.008.
- CD-RW: EUR 0.041.
- DVD-R: EUR 0.023.
- DVD-RW: EUR 0.113.
- Memory card, flash disc: EUR 0.031 max. EUR 1.840 per 1GB.
- Memory card, flash disc: EUR 0.031 max. EUR 1.840 per 1GB.
- External HDD: Up to 1TB EUR 0.003 per 1GB // Over 1TB EUR 3.356 + EUR 0.002 per 1GB.
The following levies apply to devices:
- DVD writer: 1.74%
- Memory card writer: 1.59%.
- HDD (internal only): 1.74%.
- Audio device without radio: 1.50%.
- Audio device with radio: 0.75%.
- Video device without TV: 1.80%.
- Video device with TV: 0.90%.
- E-book: 3.00%.
Coverage Storage media and/or equipment
Trading restrictions
CYPRUS
Since 2012
Chapter Online sales and transactions |
Sub-chapter Online sales
Cyprus’ Betting Act 2012
Online betting is prohibited in Cyprus.
Coverage Online gaming
Trading restrictions
CYPRUS
Reported in 2005
Chapter Online sales and transactions |
Sub-chapter Domain name (DNS) registration requirements
Country Code TLD Registration Process
Cyprus requires foreign registrants under the .cy domain to be either registered in the country or a permanent resident.
Coverage Horizontal
Trading restrictions
CYPRUS
Reported in March 2018
Chapter Online sales and transactions |
Sub-chapter Barriers to fulfillment
De minimis rule
The European de minimis threshold for import duties is harmonized. Goods with a value of up to 128 SDR / 150 EUR / 186 USD are exempted from customs duties. The VAT de minimis threshold is not harmonized within the EU and can vary between 10 and 22 EUR, i.e. Member States can decide on a value within this range to grant an exemption on VAT for imported goods.
According to Cyprus' de minimis rule goods with a value of up to 14 SDR / 17 EUR / 21 USD are exempted from VAT.
According to Cyprus' de minimis rule goods with a value of up to 14 SDR / 17 EUR / 21 USD are exempted from VAT.
Coverage Horizontal
Trading restrictions
CYPRUS
Reported in 2014
Chapter Quantitative Trade Restrictions |
Sub-chapter Local Content Requeriments for commercial market
EU Directive on Audiovisual Media Services (AVMS)
The EU Directive on Audiovisual Media Services (AVMS) covers traditional broadcasting services as well as audiovisual media services provided on-demand, including via the Internet. According to the AVMS Directive on-demand services are not subject to any explicit, strict content quota, but Article 13 imposes on Member States the obligation to ensure that on-demand service providers promote European works. The Directive has been implemented by Member States in different ways, ranging from very extensive and detailed measures to a mere reference to the general obligation to promote European works.
In Cyprus, Article 13 of the AVMS Directive has been implemented by imposing on video-on-demand (VOD) providers the obligation to reserve a share of European works in their catalogue.
In Cyprus, Article 13 of the AVMS Directive has been implemented by imposing on video-on-demand (VOD) providers the obligation to reserve a share of European works in their catalogue.
Coverage On-demand audiovisual services
Sources
- Press release -Video on Demand and the Promotion of European Works -European Audiovisual Observatory publishes new IRIS Special Report
https://rm.coe.int/1680783dc7 - Promotion of European works in practice
http://ec.europa.eu/digital-agenda/en/news/promotion-european-works-practice
Restrictions on data
CYPRUS
Since 2007
Chapter Data policies |
Sub-chapter Data retention
Data Retention Directive 2006/24/EC
Judgment European Court of Justice in Joined Cases C-293/12 and C-594/12 Digital Rights Ireland and Seitlinger and Others
Law 183 (I)/2007
Judgment European Court of Justice in Joined Cases C-293/12 and C-594/12 Digital Rights Ireland and Seitlinger and Others
Law 183 (I)/2007
Under the Directive on Data Retention, operators were required to retain certain categories of traffic and location data (excluding the content of those communications) for a period between six months and two years and to make them available, on request, to law enforcement authorities for the purposes of investigating, detecting and prosecuting serious crime and terrorism. On 8 April 2014, the Court of Justice of the European Union declared the Directive invalid. However, not all national laws which implemented the Directive have been overturned.
The Cyprus Supreme Court decided on 1 February 2011 that some of the provisions of Law 183 (I)/2007 implementing of the EU Data Retention Directive are unlawful. However, most of the provisions of the Directive still apply.
The Cyprus Supreme Court decided on 1 February 2011 that some of the provisions of Law 183 (I)/2007 implementing of the EU Data Retention Directive are unlawful. However, most of the provisions of the Directive still apply.
Coverage Telecommunication sector
Establishment restrictions
CYPRUS
Since 2014
Chapter Business mobility |
Sub-chapter Quotas, Labour Market Tests, Limits of Stay
Article 18ΦΖ(7) of the Aliens and Immigration Law (Cap.105)
For contractual service suppliers (CSS) and independent service suppliers (ISS), there are labour market tests conducted by the Ministry of Labour. The labour market test is applied to show that no suitably qualified local or European worker can be found to fill a particular job vacancy.
The test does not apply if the job concerns the following:
- Managerial staff of a legal entity of foreign interest under certain requirements
- Researchers, students, football players and coaches
- Posted workers.
The test does not apply if the job concerns the following:
- Managerial staff of a legal entity of foreign interest under certain requirements
- Researchers, students, football players and coaches
- Posted workers.
Coverage Horizontal