News

The Chamber of Deputies adopted the Senate’s modifying amendment, which fundamentally changes the rules for taxation of income of natural persons from the sale of securities and shares. Specifically, this abolishes the limit of 40 million CZK for their tax exemption, provided that the defined time tests are met and the securities or shares are not part of the taxpayer’s business property (assets). From January 1, 2026, these incomes will be completely exempt from tax regardless of their amount.

The Senate of the Parliament of the Czech Republic approved an amendment to the Accounting Act (Parliamentary Document No 783), which, among other things, extends the time limits for submitting an information statement and tax return for the Czech top-up tax.

If you purchase goods or services in other member states of the European Union as a part of your business activity, you can, if certain conditions are met, claim a refund of value added tax. Many Czech VAT payers often charge this tax directly to account as expenses; however, there is a more efficient way to deal with it.

In a recent case, the Supreme Administrative Court (SAC) dealt with the review of expense deductibility of the costs of improving property owned by another person.

Although the major amendment to the VAT Act was already adopted at the end of the last year, some passages will only become relevant in the middle of this year.

At the end of April 2025, the amendment, the so-called Flexi Reform, to the Labor Code was approved, bringing significant changes to labor relations.