Aktualizované programové prohlášení vlády

Updated Government Programme Statement

On 1 March 2023, the Government published an updated version of its Programme Statement (HERE).

Below we set out a selection of the changes we have noted in relation to tax compared to the original version:

The Government declares that, in collaboration with the National Budget Council (NBC) and the National Economic Council of Government (NECG), it will prepare and implement appropriate adjustments on the revenue and expenditure side of public finances with the aim of returning to sustainable public finances in the long term.

The declaration no longer contains the ambition to create a fiscal brake rule that caps the tax burden.

On international tax reform, the government declares that it will implement Pillar II of global taxation and push for the earliest possible adoption of a global agreement on Pillar I of global taxation.

The specific promise to reduce the depreciation period to 20 years for rental housing and the specific reduction of the depreciation period for buildings other than residential buildings in the case of minimum consumption investments (there is general talk of supporting investment in minimum consumption housing) has disappeared.

The plan to reduce VAT on the construction or renovation of flats and houses following the consolidation of public finances has disappeared.

The ambition to reduce social insurance on the employers' side by 2 percentage points, assuming consolidated and sustainable public finances in the long term, has disappeared.

If you have any questions, please contact the author of this article or the EY tax team with whom you regularly work.

Author:

Hana Cicvárková