News in Brief, July 2025

DOMESTIC NEWS

• The chamber of deputies has approved an amendment to the Accounting Act, the Auditors Act and the Act on Top-Up Taxes (please see our separate article). The amendment brings changes in the categorisation of accounting entities, a simplification of requirements for sustainability reports, and adjustments deriving from current EU and international rules. These changes are intended to make it easier for companies to comply with legislative obligations and reduce their administrative burden. The main changes are proposed to take effect from 1 January 2026; however, some provisions will already be effective on the day after the promulgation of the law.
   
• An act amending certain laws in tax administration and the powers of the Czech Customs Administration, Act No. 16/1993 Coll. on Road Tax, and Act No. 69/2010 Coll. on the Ownership of Prague-Ruzyně Airport (effective from 1 July 2025, No. 218/2025) has been published in the Collection of Laws. The act comprises a collection of amendments to a total of 117 laws and regulates the powers of the Czech Customs Administration.
   
• For example, the customs authorities will no longer inspect the employment of foreigners. The powers of the customs administration to collect and enforce fines imposed under the Administrative Procedure Code by other authorities, municipalities or regions, and local fees have been extended. Partial changes have also been made to the Tax Procedure Code and other procedural regulations in tax administration and the competence of the Customs Administration authorities, mainly following experience from application practice.
   
• Financial Bulletin No. 7 contains Instruction GFD-D-68 on the location of the file or the relevant part thereof at the tax authorities’ premises and at their territorial offices.
   
• The Ministry of Finance has published Financial Bulletin No. 8 with the following contents:
  • Instruction GFD-D-69 on the decision-making on applications for the waiver of levies for breach of budgetary discipline and penalties for delay in paying levies for breach of budgetary discipline submitted pursuant to Act No. 218/2000 Coll., on budget rules.
  • Instruction GFD-D-70 on the decision-making on applications for the waiver of levies for breach of budgetary discipline and penalties for delay in paying levies for breach of budgetary discipline submitted pursuant to Act No. 250/2000 Coll., on territorial budget rules.
     
• Financial Bulletin No. 9 contains information on How to Correctly Pay Tax to the Customs Office.
   
• The Financial Administration has published information on the new obligation of the customer to return the deduction of VAT not paid to their supplier, and the conditions for reclaiming it.
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• Among other things, the following has been published in the Collection of Laws:
  • Communication of the Ministry of Labour and Social Affairs announcing the amount corresponding to 50% of the average monthly wage in the national economy for the purposes of determining the subsistence minimum and the amount corresponding to 50% and 25% of the average monthly wage in the national economy for the purposes of state social allowances (No. 161/2025). 
  • a decree on the method of calculating the floor area for the purposes of value added tax (effective date 1 July 2025, No. 163/2025).
  • Act on the Regulation of Lobbying (168/2025) and accompanying law (169/2025) with effect from 1 July 2025).
  • Law on Housing Support (175/2025) and accompanying law (176/2025) with effect from 1 January 2026.
  • a government regulation amending Government Regulation No. 220/2019 Coll., on the maximum number of applications for a visa for a stay exceeding 90 days for business purposes, applications for a long-term residence permit for investment purposes, and applications for an employment card that may be filed with an embassy (effective from 1 July 2025, No. 206/2025).
  • an act amending Act No. 582/1991 Coll., on the organisation and implementation of social security, as amended, Act No. 155/1995 Coll., on pension insurance, as amended, and Act No. 321/2023 Coll., amending Act No. 582/1991 Coll., on the organisation and implementation of social security, as amended, and certain other laws, as amended by Act No. 417/2024 Coll. (effective from 1 September 2025, No. 214/2025).
     
• The Ministry of Industry and Trade has held another informal meeting of the Committee on Artificial Intelligence in June. The main topic of the meeting was the preparation of the Czech environment for the implementation of the EU Regulation on Artificial Intelligence (AI Act) and support for the development of the AI innovation ecosystem.
   

FOREIGN NEWS

• The European Commission has adopted the Clean Industrial State Aid Framework (CISAF). The CISAF sets out the conditions under which certain types of support measures can be considered compatible with EU state aid rules. The aim is to promote investment in renewable energy, industry decarbonisation, and clean technology production. The CISAF allows for the provision of aid in any form, including direct grants and tax advantages (e.g., tax relief and accelerated depreciation stimulating the acquisition or lease of clean tech equipment). It replaces the Temporary Crisis and Transition Framework (TCTF), which was adopted in March 2023, with the CISAF in effect from 25 June 2025 until 31 December 2030. More detailed information can be found here.
   
• The EU Economic and Financial Affairs Council (ECOFIN) has approved its report to the European Council. The report provides an overview of the progress made in the ECOFIN in indirect and direct taxation under the Polish presidency, and specifically addresses legislative updates, including the adoption of directives on the exchange of information relating to Pillar 2 (DAC 9) and VAT in the Digital Age (ViDA), as well as draft directives such as Unshell, Transfer Pricing and BEFIT, and energy taxes. More detailed information can be found here.
   
• The European Commission has published its annual report on taxation in the EU.
   
• The KPMG EU Tax Center regularly monitors changes in direct taxes in the EU and internationally. Here you will find regular summaries of the latest news (e-news) and alerts on important events (tax flash) with the option to subscribe to them.