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Possibility to keep accounts in foreign currency now part of consolidation package

The governing coalition has agreed on amendments to the bill on the consolidation of public budgets (the consolidation package planned to enter into effect from 1 January 2024). The bill has already passed the first reading in the chamber of deputies. Below we summarise the areas covered by the amending proposal according to the preliminary information published by the Ministry of Finance.

See here for previous articles on the consolidation package.

Proposed changes

Possibility to keep accounts in foreign currency

From January 2024, entities should be able keep accounts in a foreign currency (euros, dollars or British pounds) as long as it is the functional currency in which most of the entity's transactions are carried out. This change is part of the proposed new Accounting Act, which has not yet been submitted to the chamber of deputies, however. The published information does not indicate how the change will affect income taxes.

Taxation of realised exchange rate transactions only

Unrealised exchange rate differences should no longer be included in the income tax base; only realised exchange rate differences will be subject to taxation.

Taxation of non-monetary employee benefits

It is proposed to keep the advantageous tax treatment of benefits on the employees’ part, but with the introduction of an exemption limit at half the average wage in the previous period.

Abolition of exemption for managers’ accommodations

It is proposed to abolish the exemption for this form of remuneration provided to selected workers. A transitional provision should ensure that the abolition of the exemption shall not affect persons already residing in such accommodations prior to the effective date of the law.

Simplified records for agreements to perform work

Compared to the original proposal, the record-keeping of agreements to perform work outside employment should be simplified. Details are being prepared by the Ministry of Labour and Social Affairs.


The VAT rate for newspapers and periodicals should be unified by reclassifying newspapers from the 21% rate to the lower rate of 12%.

Excise duties

Compared to the original proposal, a slower increase (in terms of rates and time span) is proposed for the excise duty on electronic cigarettes, including nicotine bags. On the contrary, excise duty on alcohol should increase at a higher pace, year-on-year.

Real estate tax

Municipalities should newly receive all revenues from real estate tax. Municipalities should also be given the power to introduce a coefficient of 0.5 for agricultural land (arable land, vineyards, hop gardens, and orchards) to eliminate the increase in tax for this type of land.

Gambling tax

It is proposed to increase the minimum tax for one slot machine to CZK 13,400. The allocation of the tax revenues to individual budgets is also to change – the state’s share should increase to 55%, and the remaining part should be distributed to municipalities based on set criteria (number of inhabitants, number of permitted slot machines).