Změna definice čistého obratu a dopad do přílohy daňového přiznání

Change to the definition of net turnover and impact on the tax return annex

As we informed you last year, an amendment to the Accounting Act has changed the definition of net turnover as of 1 January 2024. In addition to the impact on the categorisation of the accounting unit and the criteria for mandatory audits (more information can be found HERE), this change also has formal implications for financial statements and corporate income tax return.

The Financial Administration has now issued an Information on the impact of this change to the corporate income tax return annex. Already during 2024, the Chamber of Auditors of the Czech Republic and the Ministry of Finance of the Czech Republic have agreed that the net turnover for the previous accounting period in the profit and loss statement in the financial statements prepared for 2024 may not be disclosed precisely because of this change. According to the Ministry of Finance, if net turnover had been presented in accordance with the previous amendment, the requirement for clarity in the financial statements would not have been met. At the same time, the Ministry does not require the recalculation of this item under the new 2024 methodology because it believes that the effort expended to recalculate 2023 turnover solely for the purpose of reporting this item in the 2024 statements would not be proportionate to the informational effect for users of the financial statements. The full opinion can be found on the website of the Czech Chamber of Auditors.

In line with this approach, it is also possible to omit this figure in the annex to the corporate income tax return. At the same time, the EPO application should also be modified to prevent error reporting and the tax administrator's information system.

If you have any questions, please do not hesitate to contact the author of the article or the EY team you are working with.

Author:

Hana Cicvárková