Zpráva o daních z příjmu – jste připraveni?

The implementation of EU Directive 2021/2101, introducing the Income Tax Information Report (Public Country-by-Country Reporting, “Public CbCR”), became effective in the Czech Republic as part of the 2024 consolidation package. The consolidation package defines the first reportable financial period as the accounting period starting after 22 June 2024.

If your financial year ends on 30 June, the first potentially reportable period begins on 1 July 2024. Subject to meeting the two-year test, the deadline for the preparation and publication of the Public CbCR would therefore fall on 30 June 2026.

Possibility to Fulfil the Obligation Through the Ultimate Parent Company’s Report

A Czech accounting entity, subsidiary, or branch consolidated by an EU ultimate parent company is not required to prepare and publish its own Public CbCR. In such cases, the reporting obligation should be fulfilled by the EU ultimate parent company.

By contrast, a Czech accounting entity, subsidiary, or branch consolidated by a non-EU ultimate parent company is not required to prepare its own Public CbCR provided that all equivalence conditions are met.

These conditions include, in particular, that:

• the non-EU ultimate parent company publishes a report equivalent to the Public CbCR for the entire group,
• the report explicitly states the name and registered office of the Czech accounting entity,
• the report is filed in Czech or English with the Czech Commercial Register (Collection of Deeds) within 12 months of the balance sheet date, and
• the report is made publicly available free of charge on the ultimate parent company’s website in a machine-readable format.

If any of these conditions are not met, the reporting obligation transfers to the Czech accounting entity.

We recommend verifying with the ultimate parent company whether it intends to publish a Public CbCR for the period ending 30 June 2025 in compliance with the requirements of Czech legislation.

Under the EU Directive, there should be no obligation in such cases to additionally file the Public CbCR with the Czech Commercial Register. However, the literal wording of the Czech Accounting Act appears to impose such an obligation. According to the explanatory memorandum, this seems to be an unintentional legislative inconsistency.

If the above obligations may apply to you, we recommend consulting your current approach in light of the expected legislative clarification.

Authors:

Kateřina Dedková

Karel Hronek