Limit of CZK 40 million for the exemption of income from the sale of shares and securities

• We remind you that from January 1, 2025, the exemption of income from the sale of securities or shares in business corporations is limited to CZK 40 million per taxpayer per year, provided the three-year or five-year holding period is met. Any part of the income exceeding this limit is subject to taxation, and the income and related expenses must be apportioned. Additionally, for securities and shares acquired before the end of 2024, a special acquisition cost adjustment can be applied.
• For more details, please read our article.

Cryptocurrencies

• Income from the sale of cryptocurrencies is regarded similarly to income from the sale of securities under the Income Tax Act and can be exempted under the same rules, i.e.:
  – the income from the sales does not exceed CZK 100,000 per year, or
  – the period between acquisition and sale exceeds three years.
• The exemption does not apply to cryptocurrencies included in business assets, and income from the sale of electronic money tokens is excluded from the exemption based on the value limit. Additionally, income exempted based on the holding period test is included in the aforementioned CZK 40 million limit, which has become common for income from the sale of shares, securities, and cryptocurrencies.
• These changes came into effect on February 15, 2025.

Employee benefits

• In the area of non-monetary employee benefits, a separate exemption limit for health-related benefits has been introduced since January 1, 2025. This limit is set at one average wage (CZK 46,557 for 2025), while the limit for other leisure benefits remains at half of the average wage (CZK 23,278.50 for 2025).

Agreements to complete a job (DPP)

• Since January 1, 2025, the limit for social security and health insurance contributions for DPP income has changed from a fixed CZK 10,000 to 25% of the average wage, making the limit CZK 11,500 for 2025.
• Simultaneously, the previously planned ‘notified agreement’ scheme, which was supposed to start from the new year, has been canceled. However, employers still have the obligation to report all DPPs as was required from July 1, 2024.

Charitable donations

• The amendment to the Lex Ukraine Act, effective from February 11, 2025, maintains the deduction limit for charitable donations at 30% of the tax base and allows the application of donations made in support of Ukraine for the tax periods of 2024, 2025, and 2026.
• For more details, please see our article.

Employee stock ownership plans (ESOP)

• The currently mandatory deferred taxation regime for ESOP income will become optional in the near future. If the employer does not enroll the ESOP income in the deferred regime within the deadline, the income will be taxable without deferral.
• We have already informed you about these anticipated changes in our article, but in the 3rd reading in the Chamber of Deputies, there was an additional change to the transitional provisions concerning the taxation of income received in 2024.
• The Senate is set to discuss the bill on February 26, 2025, and thus these changes could take effect from March 1, 2025, or April 1, 2025. We will keep you informed about further developments.