The 2019 tax package entered into effect last month. While most changes to income taxes will only affect taxpayers starting from the next accounting period, some new reporting obligations will apply immediately (e.g., the duty to report tax-exempt income such as interest, dividends or royalties paid to tax non-residents). The tax authorities have issued waivers of this reporting obligation to some entities; however, their approach to the scope of such waivers seems rather cautious.
The Ministry of Finance is already busy preparing a 2020 tax package. The Ministry of Finance disclosed draft amendments to tax laws for 2020, generally with a goal of increasing revenues. Changes would primarily affect:
The Ministry of Finance is planning to submit a digital tax proposal by the end of May 2019. According to the ministry’s estimate, this would generate additional annual revenues of CZK 5 billion. There would be a new 7% tax on placing targeted advertising on digital interfaces by corporations with a global turnover exceeding €750 million. There are also plans to impose tax on the use of multilateral digital interfaces and the sale of collected user data. The amendment is proposed to become effective from mid-2020.
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