Top-up tax forms published
The Czech Financial Administration has published the filing forms relating to the Czech qualified domestic top-up tax and the GloBE top-up tax which were introduced in the Czech Republic as of 2024 under Act No…
Current Progress of Legislative Amendments in the Area of Taxation and Accounting
The Senate has discussed important changes in the area of taxation and accounting. Some proposals were approved without modifications, while others were returned to the Chamber of Deputies with amendments. Below is an overview of the key points from the session.
The first of the discussed bills was Senate Print No. 160 (Chamber Print No. 783), which contains a proposal to amend the Top-up Tax Act and the Accounting Act. This proposal was approved by the Senate without changes and will be submitted to the President for signature. Details on the main changes introduced by this proposal were presented in the article Key Results of Legislative Discussions in the Chamber of Deputies of the Czech Republic.
The Senate also reviewed Senate Print No. 161 (Chamber Print No. 925), introducing a new act on the unified monthly employer report. This proposal was likewise passed without modifications and will be submitted to the President for signature.
The discussion of Senate Print No. 162 (Chamber Print No. 926), which implements the new unified reporting requirements in other areas including income tax, followed a different path. In this case, the Senate adopted several amendments, and the proposal will be returned to the Chamber of Deputies in its revised form.
Key Amendments Related to Income Tax
- Amendment to the Definition of Employee Benefits (§ 6 (9)(d) of the Income Tax Act):
The requirement remains that the benefit must be a non-cash fulfillment “that is not salary, wage, remuneration, or compensation for lost income.” However, the phrase “or any other fulfillment related to the performance of work” would be removed, as it could limit the provision of benefits that inherently have some connection to work performance. - Abolition of the Exemption Limit for Securities and Shares (§ 4 (3) of the Income Tax Act):
The current annual exemption limit of CZK 40 million for income from the sale of securities and shares in business corporations would be abolished. The limit would remain in place only for the sale of crypto-assets. - Amendment to the Definition of Low-Emission Vehicle (§ 21b of the Income Tax Act):
A stand-alone definition of a low-emission vehicle has been added to the law. This change prevents reliance on an EU directive, the terminology of which may change in 2025 and thereby potentially eliminate tax advantages for low-emission vehicles.
The Senate approved the remaining parts of the bill included in Chamber Print No. 926 related to income tax. Information on these changes can also be found in the article Key Results of Legislative Discussions in the Chamber of Deputies of the Czech Republic.
The legislative process for this proposal will continue to be monitored, and we will keep you informed of its outcome in due course.
