Nový zákon o účetnictví a změnový zákon míří do Poslanecké sněmovny

On 27 November 2025, the Government of the Czech Republic approved and, at the end of last week the Ministry of Finance submitted to the Chamber of Deputies, two major legislative proposals: a new Accounting Act and a wide‑ranging amendment act adjusting related legal regulations. This represents the biggest modernization of Czech accounting and the related tax legislation in decades, aiming to strengthen the quality and comparability of financial information, reduce administrative burden, and move domestic practice closer to international trends, especially IFRS.

What does the new Accounting Act introduce?
The core of the proposal is a shift from “bookkeeping ” toward financial reporting—focusing on what ultimately reaches the users of financial information, the financial statements and related reports. The act intends to more clearly define key concepts, principles, rules for recognizing assets and liabilities, and modern valuation approaches. The goal is for the financial statements to provide a true and fair view of an entity’s financial position and performance, and to be more comparable in an international context.

Another pillar is broadening the range of entities using IFRS. This reflects the reality of many companies that are part of foreign groups or capital markets and already apply IFRS voluntarily or mandatorily. The new legislation aims to strengthen the compatibility of the Czech accounting environment with European standards and increase transparency for a wider group of users—investors, banks, and regulatory bodies.

The planned effective date of the new Accounting Act is 1 January 2028.

Terminological and substantive alignment
The second proposal,the amendment act, harmonizes terminology and rules across more than a hundred legal regulations to align them with the new accounting framework. While many changes are technical, several areas introduce substantive updates with practical implications, particularly in the Income Tax Act and the Act on Property Valuation.

What does this mean in practice?
For medium and large enterprises, it will be crucial to assess the impacts on consolidation, reporting, and internal controls in a timely manner. The expansion of IFRS may increase comparability of results but will require methodological adjustments to accounting policies and data models. The emphasis on reporting will increase pressure on the quality of financial closings, balance sheet and income statement synthesis, and on the responsible use of estimates and valuations.

In the tax area, companies will need to adopt the new concept of “tax value” and adjust depreciation processes, among other changes.

What to focus on next?
We recommend preparing an internal roadmap: auditing accounting policies, mapping differences against IFRS, updating ERP and reporting tools, training finance teams, and establishing governance for new valuation and tax procedures. The new Accounting Act and the accompanying amendment act represent a shift toward greater clarity, comparability, and efficiency within the Czech accounting and tax framework. At the same time, these changes will require careful preparation, methodological certainty, and time. With the planned effective date in 2028, and for selected provisions of the accompanying acts effective from 2030, now is the ideal moment to start impact analysis and prepare the necessary organizational and technical steps.

Author:

Kateřina Dedková