Novy antibyrokraticky balicek Hospodarske komory

New anti-bureaucratic package of the Chamber of Commerce

The Chamber of Commerce of the Czech Republic has recently published the third update of its "anti-bureaucratic package" (HERE). In this package, it presents more than 400 measures aimed at reducing the administrative obligations of entrepreneurs, especially in the areas of digitalization and communication with public administration, employment, energy, health services and the environment. The Chamber of Commerce prepares similar anti-bureaucratic packages primarily with the motive to point out specific points that contribute to the Czech Republic's annual decline in the imaginary international ranking of attractive business environments.

In connection with digitalisation, the Chamber proposes, among other things, that the tax authorities, the social security administration and health insurance companies should be obliged to pass on to each other the data already held by the state administration. This is also linked to the proposal to create a single portal for entrepreneurs, which would enable comprehensive access to information on business and electronic communication with the public administration. The Chamber of Commerce also proposes a similar unified platform for electronic communication between employers and the public administration regarding employees.

The Chamber of Commerce also recommends digitization in relation to receipts, whose digital form it wants to enact as a full-fledged alternative to the paper version under certain conditions. According to the Chamber, the electronic form of the document (e.g. on a mobile phone) should also be sufficient to prove the taxation of selected products put into free circulation.

Among the proposed changes, the following can be highlighted:

• Abolition of the obligation to keep a logbook where employees use a company car for private purposes, with the proviso that such abolition would be offset by an increase in the employee's taxable income.
• Abolition or substantial limitation of reporting of income earned abroad where the income paid is exempt or not taxable in the Czech Republic. Certain limitations on reportable income are already part of the consolidation package.
• Simplification of the obligation to complete a taxpayer declaration, and only when an employee joins, leaves and changes his or her details.
• Deferral of the forthcoming new Accounting Act and possible acceleration of the effectiveness of selected provisions (e.g. the accounting currency, the modification of which became part of the consolidation package through a government amendment).
• Introduction of the possibility of termination of employment without giving reasons by the employer on condition that the employee is adequately compensated with a severance payment of at least 4 times his average earnings.
• Reviewing the need for archiving documents and generally reducing archiving periods or introducing the possibility of archiving in electronic form.
• Increase the earnings limit for employment agreements, up to which income is subject to withholding tax and not subject to insurance contributions.
• Exclusion or limitation of employers' obligations in relation to OSH when employees work from home.

The Chamber of Commerce is already preparing the concept of a single portal for entrepreneurs. The Chamber has started working with the Ministry of Labour and Social Affairs and the Ministry of Finance to simplify employee reporting. In relation to the remaining proposals, it expects discussions with the individual ministries.

If you have any questions or comments, please do not hesitate to contact the authors of the article or the EY client team with whom you work.

Authors:

Jana Semrádová

Dominik Živný