Tax and legal news

The Czech Republic has concluded framework agreements with Germany and Austria regarding persons working remotely in the other country by means of “teleworking”.

The General Financial Directorate has issued updated information on the tax assessment of obligations of accommodation providers. The information reflects legislative changes to VAT, personal income taxes and real estate taxes that are effective from January 2023.

The financial administration has published answers to questions regarding the windfall tax that is to be applied between the years 2023 and 2025.

The amendment should abolish the obligation to submit to the government each request for granting an investment incentive Assessing the incentives will be done in most cases by the Ministry of Industry and Trade, with the help of other ministries.

Global minimum tax will be applied from the tax period starting on 1 January 2024 and it will concern all companies within a group whose consolidated revenues have exceeded EUR 750 million (CZK 18 billion) in at least two of four of the immediately preceding tax periods.

Since the beginning of the year, changes have been introduced in the taxation of employees and in the area of social security and health insurance. The maximum assessment base for social security contributions has been increased; thus, the limit for taxation at the higher tax rate of 23% has also been raised. A new discount on contributions for vulnerable employees has also been introduced. At the same time, after almost twenty years, the income limit for filing personal income tax returns has been significantly increased.