The Senate has discussed the tax package for 2021

At the meeting of the Senate that took place on Thursday 10 December 2020, certain adjustments to the Amendment to the Income Taxes Act for 2021 were passed (Parliamentary Document 910). At the moment, the tax package is on its way back to the Chamber of Deputies, which should make its final decision on 22 December 2020.

Parliamentary Document 910 is available on the website of the Chamber of Deputies.

Cancelling the limit of the tax exemption of income from the sale of securities for individuals

The Senate has proposed to cancel the (non-governmental) motion to amend put forth by the Chamber of Deputies under which the exemption for an individual’s income from the sale of a security (including an equity certificate), or income from a share attributable to a participation certificate in the event of the dissolution of a mutual fund, should be newly limited to CZK 20 million per one taxation period. The Senate disagreed with this change and has proposed its cancellation.

Adjustment to the tax relief per taxpayer

In its motion to amend, the Senate has also adjusted the tax relief for taxpayers, proposing an increase from the current CZK 24,840 to CZK 27,840 for 2021 and to CZK 30,840 for 2022.

Furthermore, the Senate has passed a change in the budgetary determination of taxes that would benefit regions and municipalities. Other proposals of the Chamber of Deputies, such as the cancelling of the super-gross salary, a monetary meals allowance, or adjustments to tax depreciation have remained unchanged.

The Chamber of Deputies should discuss the amended proposal on Tuesday 22 December 2020. If the Chamber of Deputies passes the tax package, the President of the Czech Republic needs to sign the amendment and it needs to be published in the Collection of Laws of the Czech Republic in order for the legislative process to be completed.

We will keep you informed on any further developments of the amending process. Should you have any questions regarding the above topics, do not hesitate to contact us.

Amendment to the Income Taxes Act Tax Package

The Intrastat reporting will change as of 1 January 2022

In line with the Government regulation on the implementation of certain provisions of the Customs Act in the area of statistics of 23 August 2021, the Intrastat reporting will change with effect from 1 January 2022. The new Government regulation has been prepared in cooperation with the Czech Statistical Office and will replace the existing legislation, i.e. Regulation no. 244/2016 Coll. The main reason for the replacement of the existing legislation is the extensive change of the directly applicable EU legislation in the area of statistics relating to the trading of goods between the Member States. 

22. 9. 2021

OECD update on a two-pillar solution

The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (i.e., BEPS Action plan) has agreed on a two-pillar solution to address challenges arising from the digitalisation and globalisation of the economy. There are couple of changes in the current version plan, e.g., Pillar One shall be designed for all MNEs companies fulfilling specific turnover and profitability criteria (see below), while in the previous version of the plan Pillar One was mainly intended for technological giants. 

21. 9. 2021