Taxes
Changes in employee income taxation in 2024
Changes in the taxation of employee income for 2024 mainly stem from the amendment to the Income Tax Act approved as part of the consolidation package. A summary of the most important ones is presented below.
Changes in VAT from 2024
On 1 January 2024, the consolidation package came into effect. It also includes an amendment to the VAT Act, introducing two major changes to VAT: the consolidation of two reduced rates of 15% and 10% into one 12% rate (reclassification of some…
Update on Czech and global top-up taxes
At the end of 2023, the law on top-up taxes for large multinational and national groups implementing the EU directive on global minimum tax entered into force. From taxable periods beginning after 31 December 2023, companies and permanent…
Registration in central CBAM registry launched
The carbon tariff (CBAM Directive) is a much talked about topic, especially now at the turn of the year. The directive entered into force on 1 October 2023, starting the transitional period that ends at the end of 2025. The Czech Republic has…
Chamber of deputies approves long-term investment product
In its third reading, the chamber of deputies has approved a bill on the development of the financial market and the promotion of old-age security, which, among other things, introduces a long-term investment product as a new tax-efficient old-age…
Consolidation package: detailed overview of changes
The Parliament approved the The Act on the Consolidation of Public Budgets. Most of the provisions are proposed to come into effect on 1 January 2024. Below we summarise the planned changes in tax and related areas.
Proposed changes in taxation of employee stock option plans
If you intend to provide employees with a benefit in form of an employee option or a share in a business corporation (most often by transferring shares as part of employee stock option plans), you will be interested in the currently discussed…
Proving R&D allowances will be easier
The chamber of deputies has discussed amendments to laws in connection with the development of the financial market. In the second reading, the coalition submitted a proposal to amend the Income Tax Act with the aim to simplify proving R&D…
Bookkeeping in foreign currency: how to determine functional currency and make…
The Ministry of Finance has published a draft amendment to the decree for entrepreneurs implementing the Act on Accounting. The new wording of the decree is related to the changes introduced by the consolidation package: provisions regulating the…
New rules for presentation of top-up tax in accounting
Entrepreneurs, banks, and insurance companies accounting for deferred tax will not have to consider the top-up tax when calculating deferred tax. However, they will be obliged to provide information about the top-up tax in the required extent in the…
Amendment to the VAT Act 2024: notification obligation for payment service providers
The Chamber of deputies has approved a draft amendment to the VAT Act that is to come into effect on 1 January 2024. Amending proposals that have been passed mainly concern the development of case law around tax submissions using prescribed forms.…
ViDA: extension of OSS and introduction of single VAT registration
The VAT in the Digital Age (ViDA) proposal promises to modernise the VAT system across the European Union, aiming to increase EU tax revenue, digitalise reporting, defend against tax fraud more effectively, and move towards a definitive VAT system.…