Income taxes

Limited exemptions for the sale of securities and shares

The unlimited exemption of income from the sale of securities and shares has been terminated. As of 1 January 2025, this type of income is exempt from personal income tax only up to the amount of CZK 40,000,000 per taxpayer within any given tax period - provided that the time test (of three and five years) in respect of shares in companies is met.
If this type of income exceeds CZK 40,000,000, it shall be tax exempt only partially, and only up to the amount of CZK 40,000,000. Income above this threshold shall be considered taxable; however, it will be possible to deduct the costs provably incurred when generating such income in the ratio by which the income exceeds CZK 40,000,000.
We recommend securing an expert assessment of such value as at 31 December 2024 in order to ensure that in the future, only the increase in value from 1 January 2025 will be taxed. The amount resulting from the expert's evaluation can be used as a tax expense.

Exemption of income from crypto-assets

As of 1 January 2025 the income from sale of crypto-assets or crypto-currencies is exempt from personal income tax under similar conditions as those that apply to securities. Until the end of 2024 such income was not exempt.
The conditions for tax exemption are similar to those applicable to securities - namely, if crypto-currencies are held for more than three years, their sale will not be taxed. The same limit as that which pertains to the sale of securities shall apply - CZK 40,000,000. Moreover, sales under CZK 100,000 are tax exempt and do not have to be recorded in the tax return.

Increased tax deduction of donations is effective until 2026

The increased limit on tax deductions (up to 30 per cent of the tax base) has been prolonged until 2026 and may be applied to all kinds of donations - for example, it can be applied to donations aimed at the repair of flood damage from 2024. The tax advantages regarding donations supporting the Ukraine shall remain in place.

Depreciation of photovoltaic power plants

The special regime providing for the even depreciation of photovoltaic power plants over a period of 240 months has been revoked. Assets that were subject to the regime shall be depreciated according to their classification in the appropriate depreciation group.