News, in Brief, November 2024

DOMESTIC NEWS

• Decree No. 287/2024 Coll., amending certain decrees in connection with the adoption of Act No. 162/2024 Coll., amending Act No. 125/2008 Coll., on transformations of corporations and cooperatives, has been published in the Collection of Laws. It is effective from 2 October 2024.
• An amendment to Decree No. 456/2020 Coll., on real estate tax submissions through prescribed forms, has been published under No. 297/2024 with effect from 1 January 2025.
• Government Regulation No. 240/2014 Coll., on toll rates, toll discounts and remuneration for the provision of the European Electronic Toll Service (effective from 1 January 2025, No. 299/2024) has been amended.
• Under the jurisdiction of the Ministry of Labour and Social Affairs, the following notices were published in the Collection of Laws in October:
  • Notice No. 307/2024, establishing reduction limits to adjust daily assessment bases for the purposes of sickness insurance applicable in 2025
  • Notice No. 308/2024 Coll., declaring an increase in the threshold decisive for employees to participate in sickness insurance. This threshold will amount to CZK 4,500 next year.
• The Financial Administration of the Czech Republic is introducing changes that will facilitate communication between the state and its citizens. It is gradually moving to gov.cz, a single domain that is part of a broader government plan to simplify access to public services. Some websites of the financial administration have already switched to the new domain. The old links will be redirected to the new addresses (for the next 10 years). In addition to websites, email communication will also be affected by the change. The current addresses using the @fs.mfcr.cz domain will gradually be replaced by new addresses with the @fs.gov.cz ending. The transition will be completed by the end of 2024 at the latest, but emails sent to the old addresses will continue to be delivered automatically.
• The EU list of non-cooperative jurisdictions in the tax area has been published in Financial Bulletin No. 9/2024.
• An amendment to the Insolvency Act (No. 252/2024 Coll.) and an amendment to Decree No. 254/2024 Coll., on the essential requirements for submissions and prescribed forms for electronic submissions in insolvency proceedings, are in effect from 1 October 2024.
   

FOREIGN NEWS

• The KPMG EU Tax Center regularly summarises changes in direct taxes in the EU and internationally that may affect your business. Here you can read about important case law and new legislation at OECD, EU, and national levels. For the complete edition of 4 November 2024, click here.
• Concerning Pillar 2, we draw your attention to new registration obligations in Germany and Austria.
• Slovakia is finalising the approval of the consolidation package in effect from 2025. Key changes to corporate income tax include:
  • Increase in the corporate income tax rate from 21% to 24% for taxpayers with a tax base of over EUR 5 million.
  • Decrease in the corporate income tax rate from 15% to 10% for taxpayers with a tax base not exceeding EUR 100,000.
  • Decrease in the withholding tax rate on dividends from 10% to 7% for dividends paid to individuals (natural persons).
• The Financial Transaction Tax (FTT) Act has been passed in Slovakia. FTT rates vary according to the type of transaction: the basic rate is 0.4% with a maximum of EUR 40 per transaction, except for cash withdrawals, which are subject to a 0.8% rate, and card payments, which are subject to an annual tax of EUR 2.
• A summary of the Slovak consolidation package can be found here.