News in Brief, April 2025

Domestic Briefs

• The Act amending Act No. 247/2014 Coll., on the provision of childcare services in children’s groups and amending related acts, was published in the Collection of Laws on 27 March 2025 under No. 84/2025. The act, among other things, regulates the taxation of employee stock and option plans and as regards this regulation, entered into effect on 1 April 2025. More detailed information on the issue is available here.
   
• The following regulations were also published in the Collection of Laws in March:
  • Decree No. 66/2025 amending Decree No. 117/2024 Coll., on establishing electronic communication for the fulfilment of employers' information obligations when employing foreigners (effective 1 April 2025).
  • Communication of the Ministry of Foreign Affairs (No. 67/2025) replacing Communication No. 20/2024 Coll., on the facts concerning the implementation of the Agreement between the Czech Republic and Canada concerning the facilitation of temporary work stays of young people
  • Amendment to Act, on Legal Profession No. 73/2025, effective 1 April 2025
  • Decree No. 76/2025 amending Decree No. 525/2020 Coll., on submissions via prescribed forms relating to income tax (effective 1 May 2025)
  • Act No. 79/2025 amending Act No. 203/2006 Coll., on certain types of support for culture and on amendments to certain related acts (effective 1 July 2025)
  • Government Regulation No. 86/2025, on the details of registration for special long-term residence (effective 31 March 2025)
     
• The Ministry of Finance has initiated a comment procedure on the amendment to the Act on International Cooperation in the Field of Taxation, which will implement into Czech law the rules for the exchange of information for minimum tax purposes within the EU (DAC 9), or even outside the EU if the relevant interstate agreements have been concluded. The amendment includes a uniform format for the information return, which is based on the OECD format.
   
• The Ministry of Finance has initiated a comment procedure on the decree setting the method of calculating the floor area for the purposes of value added tax.
   
• Decision on a waiver of tax accessories due to an extraordinary event (flood) was published in Financial Bulletin No. 6.
   
• The Ministry of Industry and Trade held this year’s first meeting of the Artificial Intelligence Committee. The main topics were the implementation of the EU Artificial Intelligence Act into Czech law, the implementation of the National Strategy for AI, and the support for research and innovation in this field. A representative of the Ministry of Health said here that AI will be incorporated into the updated National eHealth Strategy 2025-2030. Support for start-ups in AI was presented by a representative of CzechInvest who pointed out the possibility of funding through the Technology Incubation Programme.
   
• In March, the Ministry of Health and the Ministry of Labour and Social Affairs introduced the linking of social and health data. This new system initiated back in 2022 is now fully operational and legislated. Linking data between the two ministries allows to provide better care to those who need combined health and social support. The project also simplifies administrative processes.
   

International Briefs

• The initiatives to reduce bureaucracy and cut red tape within the EU also cover taxes. The first step should be the revision of the Directive on Administrative Cooperation (DAC) as regards reportable cross-border arrangements (DAC 6), and the Anti-Tax Avoidance Directive (ATAD). For more information, see the Council conclusions.
   
• The EU Council has reached political agreement on the rules governing the framework for the exchange of information on top-up tax information returns and agreed to introduce a single format for this information return (DAC 9). Following final approval by the Council, the amendment to the directive on administrative cooperation will be published in the Official Journal of the EU. Member states should implement the amendment by 31 December 2025.
   
• The VAT in the Digital Age (ViDA) legislative package was published in the Official Journal of the EU (OJEU) on 25 March 2025, following adoption by the EU Council on 11 March 2025. The directive, regulation and implementing regulation will enter into force on the 20th day following their publication in the OJEU, i.e., 14 April 2025.
   
• The KPMG EU Tax Centre regularly monitors changes in direct taxes in the EU and internationally. For a complete overview of the latest developments, please see the 18 March 2025 issue.