Taxes
Coordination Committee clarifies VAT treatment of employee benefits, leaves open…
The Coordination Committee of the Chamber of Tax Advisors and the General Financial Directorate recently discussed a paper on the VAT treatment of employee benefits and the symbolic payment for a taxable supply. The discussion conclusions confirmed…
Amendment to VAT Act in effect from new year
The amendment to the VAT Act introduces several key changes that will affect all VAT payers. Selected changes have a delayed effect - e.g., changes in immovable property will apply from 1 July 2025, while some changes in financial services will take…
Changes in employee taxation in 2025
With the new year come changes in employee taxation and social security and health insurance. Below, we present an overview of the most important issues.
Changes in taxation of immovable property in 2025
On 1 January 2025, the second part of the amendment to the Real Estate Tax Act, which already in 2024 introduced numerous significant changes, entered into force. Below, we summarise the most important changes for this year.
Proposal to simplify administration – single monthly employer report
From 2026, the Ministry of Labour and Social Affairs wants to launch a single monthly employer reporting project that could significantly reduce the administrative burden for businesses as regards employees, and today's up to 25 different monthly…
ViDA : key changes to VAT and their impact on EU business
The European Union reached a major milestone in tax policy when the ECOFIN Council approved a package of measures aimed at modernising VAT rules, known as the VAT in the Digital Age (ViDA) Directive in early November 2024. This comes after almost…
Ministry of Finance: new Accounting Act to take effect only from 2026
The Ministry of Finance has published an updated working version of the draft of the new Accounting Act and has confirmed that it is expected to come into effect from January 2026 at the earliest.
Exemption of income from sale of securities and shares in corporations restricted…
From 1 January 2025, income from the sale of securities and shares in corporations meeting the time test of three years for securities and five years for shareholdings will be exempt from personal income tax only up to CZK 40 million per taxpayer in…
VAT Act amendment coming into effect: overview of main changes
The chamber of deputies has approved an amendment to the VAT Act in its third reading. The senate is expected to approve the chamber's wording, and the planned effective date of 1 January 2025 will therefore be adhered to. Certain changes, in…
Taxes Chamber of deputies: proposal to abolish notified agreement scheme
The planned introduction of a ‘notified agreement’ scheme for agreements to perform work outside employment is likely to be cancelled. A proposal has also been submitted in the chamber of deputies to abolish mandatory social security and health…
New limit for health-related benefits
The chamber of deputies is currently debating an amendment to the Employment Act and other changes to laws. In the area of income tax, it is proposed to introduce a new limit specifically for health benefits, up to the amount of average wage. The…
Retirement savings products likely to face changes to compounding of savings periods
Amending proposals have been submitted as part of the forthcoming amendment to the Act on Child Care Services in Children’s Groups to ensure that savings periods are added up upon the transfer of funds to new retirement savings products and that the…