Czech Republic: Overview of possible tax legislative changes

Implementation of several EU directives would affect direct taxes

Implementation of several EU directives would affect direct taxes

A four-year legislative cycle just began, and implementation of several EU directives included in this cycle would affect direct taxes.

The possible tax legislative measures could include:

  • Continued work on provisions of a new accounting law, with an anticipated effective date of 2024. The changes would include:
    • Availability to apply International Accounting Standards instead of Czech accounting regulations
    • Use of a currency other than the Czech crown even when accounting under Czech accounting regulations
    • Greater emphasis on general accounting principles
  • Possible increase of the threshold for value added tax (VAT) registration to CZK 2 million (from CZK 1 million)
  • Transposition into Czech law of EU directives that establish a new reporting obligation for platform operators (DAC 7) and that introduce the obligation to disclose selected information on income tax paid in EU Member States

Read a March 2022 report prepared by the KPMG member firm in the Czech Republic

 

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