Tax Package


Tax Package at the Constitutional Court of the Czech Republic

As we have informed you in our previous articles, during the approval process of the Tax Package for 2021 (amendment of the Income Taxes Act as of 1. 1. 2021), doubts arose as to whether the legislative process took place in a constitutionally prescribed manner. Now, a group of senators asked the Constitutional Court of the Czech Republic to review the constitutionality of the Act’s approval process and proposed it be abolished. According to the Constitution of the Czech Republic, the Constitutional Court can decide on the abolishment of an act should it be contrary to the constitutional order. 

23. 3. 2021

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: changes in tax depreciation / amortisation charges from 1 January 2021

The tax package, or, more precisely, Act No. 609/2020 Coll., was published in the Collection of Laws of the Czech Republic on 31 December 2020, coming into effect on 1 January 2021. In December 2020, its effectiveness was affected by a dispute whether or not President actually vetoed the Act by refusing to sign it, and, as a result, the opposition is considering lodging a constitutional complaint with the Constitutional Court. Whatever the result of this political debate, if we proceed from the effective date of 1 January 2021, the tax news of 2021 already have to be taken into consideration because it is a very current topic, especially in the area of tax depreciation / amortisation charges, which can be utilised retrospectively from 1 January 2020 under specific conditions in line with the transitional provisions. As part of the fight against the coronavirus crisis, the tax package brought three changes in the area of tax depreciation / amortisation, which we will cover in this article. 

22. 1. 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

Tax News – Summer 2020

We have already informed you in our previous articles about the forthcoming changes, which include so-called implementation package amending several legal regulations due to the implementation of EU tax laws. In terms of taxes, the implementation package of the Ministry of Finance of the Czech Republic slightly amends the Income Taxes Act, brings about a major change in cross-border transactions in the VAT Act and also introduces the long-announced obligation to report cross-border arrangements in the Act on International Cooperation in Tax Administration. 

17. 9. 2020

Gambling Taxation Revised by the Chamber of Deputies of the Czech Republic

Parliamentary Press No. 509 – the government bill on amendments to certain tax acts in connection with increasing public budget revenue, which also amends Act No. 586/1992 Coll., on Income Taxes, as amended (“Income Taxes Act”) – was passed through a third reading in the Chamber of Deputies of the Czech Republic. On 8 November 2019, it was submitted to the Senate of the Czech Republic for further debate. Therefore, the changes that this parliamentary press proposes may pass and become effective on the expected date, i.e. 1 January 2020. 

20. 11. 2019