Tax and legal news

From January 2024 onwards, a number of changes in the tax area are expected as part of the recovery package. The recovery package has successfully passed the Chamber of Deputies and now awaits approval by the Senate.

The recovery package introduces two VAT rates: the basic rate of 21% and the reduced rate of 12%. The 10% rate has been abolished.

The Chamber of Deputies approved the consolidation package bill in its third reading. The measures included in the package are to reduce budget deficits by a total of CZK 150 billion over the next two years.

The Czech government has presented a Recovery Package with 58 measures that represent savings of up to CZK 147.5 billion in the state budget. The government plans to approve the legislative wording during June 2023, with the first reading in the Chamber of Deputies before the holidays and the effective date from 1 January 2024.

There is a new reporting obligation to the social security administration, effective from 1 April 2023.

The threshold decisive for the obligation to file a tax return has changed for the year 2023 from the original amount of CZK 15,000 to CZK 50,000.