The Recovery Package in the context of tax changes
Following the Government announcement on the Recovery Package, the related amendment to the tax regulations was published. Below we summarise a selection of the most important changes in this area.
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.
The amendment to the Income Taxes Act came into effect on 1 January 2021, which makes its applicability and the interpretation of transitional provisions simpler. However, this means that all taxpayers who are individuals will be subject to the new taxation system from 2021 without having a choice (in case the Act did not come into effect on 1 January 2021, it was proposed in the transitional provisions that individuals could choose between the existing and the new taxation systems). As a result, it will be necessary to deal with the following in January 2021:
Setup of tax depreciation charges
Changes to the personal income tax and employee benefits
We will be happy to discuss with you all the aspects of the amendment to the Income Taxes Act for 2021 and its potential effects on 2020 and we are looking forward to our cooperation.
Parliamentary Document 910 is available on the website of the Chamber of Deputies.
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