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Dear Readers, Please find below our short news for April 2025:

• Please be advised that the deadline for filing income tax returns and paying taxes for 2024 expires on 2 May 2025 where the tax return was not filed within the basic deadline pursuant to Section 136 (1) of the Tax Code, and the tax return will be filed electronically.
   
• A Government bill, which amends certain laws in the tax administration field (Parliamentary Press No. 784), was passed in the third reading in the Chamber of Deputies on 23 April 2025. Major part of the bill is composed of an amendment to the Tax Code consisting of a set of partial changes that respond to a reform of the Customs Administration of the Czech Republic, the decision-making practice and development in related fields of law.
   
• A Government bill about a uniform monthly employer report (Parliamentary Press No. 925) was passed in the first reading in the Chamber of Deputies on 23 April 2025. We have informed you about changes for employers, which would result from the passed law, in an article on our website.
   
• On 16 April 2025, a Government bill, which amends certain laws in connection with the adoption of the Act on Housing Support (Parliamentary Press No. 730), was passed in the third reading. Related amendments to Act No. 586/1992 Coll. on Income Taxes (the “ITA”), introduce a possibility to apply tax deduction of interest on a housing loan also for members of housing cooperatives. We addressed the planned changes in an article on our website.
   
• An amendment to the Labour Code was signed by the President and published in the Collection of Laws as Act No. 120/2025 Coll. on 29 April 2025. This amendment will come into force on 1 June 2025, with the exception of selected articles that will only come into force on 1 January 2026. The law will bring along the following changes: The notice period will start running immediately after the notice’s delivery; an option of extending the probation period to four months for regular employees and eight months for managers; a possibility to pay wages in a foreign currency; an option to reduce the daily rest in the event of emergencies; a change in rules for resignations for medical reasons; a possibility of minors’ work from the age of 14, etc.
   
• Government Regulation No. 122/2025 Coll., which defines the category and scope of other significant personal obstacles to work, was published in the Collection of Laws on 29 April 2025. This Regulation specifically regulates provision of a time off in case of getting married, death and looking for a new job. The Regulation will be effective from 1 June 2025.
   
• On 25 April 2025, the President signed an amendment to the Act on the State Transport Infrastructure Fund, which also amends Act No. 235/2004 Coll., on Value Added Tax, as subsequently amended (Parliamentary Press No. 376). A change effective from 1 July 2025 involves insertion of a new subsection into Section 21 of the law, which reads that Section 21 (8) will not be applied to a performance provided by a payer within a PPP project in the field of transport infrastructure, if payments are financed with the use of funds administered by the State Transport Infrastructure Fund.
   
• The Ministry of Finance will submit a proposal on the next Government’s meeting to enter into a Double Tax Treaty between the Czech Republic and the Republic of Kenya concerning income tax to prevent tax evasions and avoidance of tax liability. A contract-free relationship currently exists between the two countries.
   
• The Ministry of Finance published an explanation of planned changes in the system of collecting taxes from part-timers and individuals working on the basis of an agreement to perform a job or a contract for work on 8 April 2025. The Ministry proposes to cancel withholding taxes with the effect anticipated from the taxation period of 2027, and to replace those taxes with an upfront tax respecting the self-assessment principle.
   
• As of 1 May 2025, an amendment to the Act on Concession Fees, which was published in the Collection of Laws as Act No. 119/202 Coll. on 28 April 2025, will come into force. Corporations will pay the fees irrespective of receivers’ ownership exclusively with reference to the number of their employees. Firms with less than 25 employees and self-employed individuals will not be obliged to pay the fees. In addition to this, the exemption from paying those fees will also apply to companies with staff composed of physically handicapped members in more than 50%.
   
• Communication of the Ministry of Foreign Affairs No. 94/2025 Coll., on Entering into a Double Tax Treaty between the Czech Republic and Monte Negro, was published in the Collection of Deeds on 3 April 2025. The published Treaty came into force on 30 January 2025 and will be implemented from or after 1 January 2026. The Double Tax Treaty between the Czech Republic, Serbia and Monte Negro will cease to be effective with regard to the relationship between the Czech Republic and Monte Negro as of the date when the new Treaty starts to be implemented.
   
• On 7 April 2025, the Financial Administration published the final version of Information of the General Financial Directorate in connection with an amendment to the Income Tax Act regulating the tax regime of employee stock and option schemes (Act No. 84/2025 Coll.).
   

Jitka Sobotková
sobotkova@clarksonhyde.cz