Tax and legal news

A new tax on unexpected profit should become effective on 1 January 2023. The third reading of the relevant parliamentary bill – which includes voting on individual amendments – was held on Friday 4 November 2022.

An amendment proposes the extension from 1 January 203 of the extraordinary depreciation regime relating to tangible assets of the first and second depreciation groups.

Together with restrictions on school attendance during the 2020-21 pandemic, practical workplace training of future employees was also restricted.

Currently, entrepreneurs can pay tax and social security and health care contributions at the flat-rate amount if their income does not exceed CZK 1 million in a single calendar year. Many payers appreciate this, as financial and administrative simplification because they are not obliged to file a tax return or the social security and health insurance overviews.

An amendment to the VAT Act introduces from 1 January 2023 an increase in the limit for registration for VAT from the current CZK 1 million to CZK 2 million over the consecutive twelve months.

From 2023, all natural persons who are entrepreneurs will be obliged to use digital data boxes set up for them. Digital data boxes will be also set up for citizens who will using for the first time a device for electronic identification issued within the qualified electronic identification system.