Amendment to the Income Taxes Act


Tax package and its impact on accounting with respect to depreciation

We entered the new year together with the amendment to the Income Taxes Act approved in December 2020. In addition to a number of changes relating to individual income tax (cancellation of the super-gross wage, progressive taxation, monetary meal allowance, change in the amount of personal tax allowance) that were often discussed in the media, the amendment resulted in changes relating to tax depreciation. We would like to briefly introduce the changes together with their impact on accounting. 

19. 2. 2021

Tax package in effect from 1 January 2021

Even though President Miloš Zeman refused to sign the amendment to the Income Taxes Act for 2021 (Parliamentary Document No. 910), the amendment was published in the Collection of Laws under 609/2020 Coll. and came into effect on 1 January 2021. However, the effectiveness of the Act could be affected by the dispute whether President actually vetoed the Act by refusing to sign it, which could potentially lead to a constitutional complaint being lodged with the Constitutional Court. 

6. 1. 2021

Briefly on Selected Amendments to the Income Taxes Act

The development of Czech legislation has recently been so rapid that it is starting to be rather difficult to keep track of all the proposed changes. We have therefore prepared a brief overview of some of the proposed changes in the area of income taxes that are either under preparation or already in the legislation process and will affect Act No. 586/1992 Coll., on Income Taxes, as amended (hereinafter the “Income Taxes Act”). 

26. 5. 2020

What should you not underestimate in preparing the corporate income tax return?

For a whole series of entities, this year’s deadline for filing a due corporate income tax return is 1 July. The article below summarises the areas where, in our experience, entities frequently make mistakes, highlights the existing judicature and also provides a brief summary of the selected areas that you should not neglect in relation to the most recent amendment to the Income Taxes Act (the “ITA”). 

3. 5. 2019

TaxAlert: Complications in calculating the super-gross salary from January 2019

The President of the Czech Republic signed the amendment to the Income Taxes Act on 11 December under which employers will have to distinguish a country in which an employee participates in a system of compulsory insurance (social security and health insurance) in calculating prepayments for employment income tax starting from 1 January 2019. The same procedure will apply to tax returns from the 2019 taxation period. 

11. 12. 2018