Tax and legal news

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.

The Financial Administration has notified payers of road tax who have already made their 2022 advance payments, that such advance payments were abolished by the amendment to the Road Tax Act, effective from 1 January 2022.

From 1 February 2023, employers will be able to apply a new discount on social security contributions with respect to selected part-time employees. The aim is to support part-time employment for those who cannot work full-time because of their age or difficult life situations.

According to information issued by the General Financial Directorate (GDF), the non-monetary income for a low-emission vehicle will now be set at 0.5% of the purchase price of the vehicle per month from 1 July 2022 (1% for other types of cars). Even though the pertinent amendment to the relevant parliamentary act is effective from 1 July 2022, the transitory provisions allow the new rule to apply for the entire 2022 tax year.