24. 7. 2025
24. 7.
2025
Senate: Single Monthly Employer Reporting bill passed
The senate has passed the Bill on Single Monthly Employer Reporting (in Czech Jednotné měsíční hlášení zaměstnavatele or JMHZ). However, the accompanying bill containing unrelated legislative amendments was returned to the chamber of deputies with modifications.
We already reported on the JMHZ bill and on the changes to tax laws resulting from the accompanying bill, and we published a summary of the changes approved by the chamber of deputies including the news regarding ESOPs, the limit for the exemption of selected income, and the R&D allowance.
However, unlike the bill introducing the single monthly employer reporting itself, the accompanying bill was not approved by the senate but sent back to the chamber of deputies with proposed amendments.
The amendments relating to the Income Tax Act include:
- The abolition of the annual limit of CZK 40 million for the tax exemption of income from the sale of securities and ownership interests in companies; the limit would be preserved only for the exemption of income from the sale of crypto-assets. The abolition of the limit had been originally proposed for all the above types of income, but this was not passed by the chamber of deputies.
- A clarification that tax exempt non-financial leisure and health-related benefits provided by employers to their employees shall not be wages, salaries, remuneration, or compensation for loss of earnings. The bill approved by the chamber of deputies also included the wording that that they must not be any other supply linked to work performance, which had caused uncertainty from the outset, as benefits are always to some extent linked to work performance. The senate has proposed to delete this wording.
- A definition of a low-emission vehicle specifically for income tax purposes as a road motor vehicle of category M1, M2 or N1 that does not exceed the CO2 emission limit of 50 g/km and is not an emission-free vehicle; the current definition (by reference to another regulation) would make it impossible from 2026 to grant a tax advantage upon the provision of a company car for both business and private purposes.
It is not yet clear when the chamber of deputies might get around to passing the accompanying bill. The chamber may pass either its original version or the senate’s version; always as a whole without the possibility of voting on individual proposed amendments. The approved version would then be considered by the president and, if signed, promulgated in the Collection of Laws. It is also possible that the law will not be adopted at all because neither the chamber of deputies’ nor the senate’s version is passed or the deputies do not get around to passing it before the end of the current parliamentary term.
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