CZECH REPUBLIC Law and Practice Contributed by: Robert Neruda, Roman Světnický, Martin Rott and Robert Nersesjan, HAVEL & PARTNERS
2.6 Calculations of Jurisdictional Thresholds
As for the geographical allocation of turnover, turnover from products and services sold to customers located in the Czech Republic at the time of entering into the respective agreement is regarded as Czech turnover. As for foreign currencies, all financial data must be converted into Czech crowns using the aver - age exchange rate quoted by the Czech National Bank for the period to which such financial data relates. 2.7 Businesses/Corporate Entities Relevant for the Calculation of Jurisdictional Thresholds As stated in 2.6 Calculations of Jurisdictional Thresholds , the turnover is calculated on the basis of the most recent audited accounts of not only the participating undertaking but also undertakings associated with each participating undertaking. The turnover of the undertaking on the selling side (in cases of acquisitions) is not taken into account for the purpose of turnover calculation. Accordingly, where an undertaking transfers only some of its subsidiary companies to another, the turnover achieved by the companies whose control is transferred is included, but the selling undertaking’s turnover is not. The basis for turnover calculation is the most recent audited accounts of a financial year of the following entities (in line with EU merger control rules): • the participating undertakings (undertakings concerned); and • any undertakings associated with each par - ticipating undertaking, including directly and indirectly controlling entities (parent compa -
Turnover constitutes the net turnover derived from the sale of products and services gener - ated by an undertaking within its ordinary activi - ties after the deduction of: • value added tax and other directly related taxes; and • any turnover between associated undertak - ings. There are special rules on turnover calculation for particular businesses. • State-controlled businesses: the turnover does not include all companies that are directly or indirectly controlled by the state, but only those that form part of the same business entity. • Insurance companies: the value of the gross premiums of all insurance contracts conclud - ed applies – not only those insurance con - tracts concluded in the particular accounting period, but all ongoing contracts concluded in the past. • Banks: the turnover is calculated as the sum of revenues, including: (a) income from securities and participating interests; (b) net profit on financial operations; (c) interest income; and (d) fees and commissions. • Sales of services through other providers: in cases where the services are sold through an intermediary (eg, advertising or tourism), even if the intermediary charges the final customer for the full price for the service, the turnover is made up of commissions received from the primary provider for the mediation of the service.
140 CHAMBERS.COM
Powered by FlippingBook