Dlouho očekávané daňové novely

Today, there was a significant advancement in the Chamber of Deputies regarding the long-awaited tax amendments (Chamber Prints 783, 925, and 926):

• The amendment to the law on top-up taxes was approved – the likelihood of averting the threat of an extremely short ten-month deadline for filing the Czech top-up tax return is therefore increasing;
• The amendment to the accounting law was approved, which, among other things, brings relief in respect of the audit of small accounting entities and sustainability reports;
• An initiative for the introduction of a unified monthly employer reporting was approved – more on this topic can be found HERE;
• Additional amendments to the income tax law (or the law on reserves) were approved – the most interesting from our perspective include:
  • Adjustment of the regime for employee stock/option plans – including both parametric adjustments to the existing regime (e.g., shifting the latest moment for taxation from 10 to 15 years) and a completely new regime for selected companies (shifting taxation from § 6 to § 10);
  • Adjustments to the deduction for research and development (for example, an increased 150% deduction up to a limit of CZK 50 million);
  • Increase of the limit for "insignificant" receivables, for which a one-time 100% provision can be created, increasing from CZK 30,000 to CZK 50,000;
  • Adjustment of the exemption for employee benefits specified in § 6 paragraph 9 letter d) in such a way that it will now explicitly have to be benefits that "are not wages, salaries, remuneration, compensation for lost income, or any other benefits related to work performance";

Conversely, the proposal to abolish the CZK 40 million cap on the exemption of income for individuals from the sale of securities/shares/cryptocurrencies was not approved.

Author:

Karel Hronek