Tax and legal news

The changes include a new limit for classification as a tangible asset for the purpose of the Icome Tax Act (CZK 80,000), elimination of the tax depreciation of intangible assets and introduces the extraordinary depreciation of tangible assets classified in the first and second depreciation groups.

Meal voucher allowance can be provided to employees in addition to the existing corporate catering or paper meal vouchers.

The amendment to the Income Tax Act, effective from 1 January 2021, introduced progressive taxation with rates of 15 per cent and 23 per cent and also eliminated the super-gross salary.

The Income Tax Act implemented the possibility to use past tax losses retroactively. It applies to tax losses accrued in the tax periods ending 30 June 2020 or later with respect to personal and corporate income tax and it covers up to two preceding tax periods where the tax loss was created.

Changes to the Tax Code mean also changes to deadlines for the submission of income tax returns (tax periods of at least twelve months).

The Financial Administration plans to launch an on-line financial office (the site MOJE daně, i.e. MY taxes) on 28 February 2021.