Blog

Dear Readers,

Please find below our last short news for 2023:

• Major news from the end of 2023 includes the consolidation package’s publishing in the Collection of Laws. Act No. 349/2023 Coll., that amends certain laws in connection with public budgets’ consolidation was published in the Collection on 12 December 2023. Most provisions of this law are effective from 1 January 2024. We informed you about changes brought along by the consolidation package on our blog.
   
• The consolidation package repeals the registration obligation of selected taxpayers and income tax payers (among others) from January 2024. As a consequence, individuals starting up their business (self-employed individuals), payers of corporate income tax withheld under a special tax rate and payers securing income tax will not be obliged to register with a tax office. The registration obligation will only continue to apply to corporate income tax payers and employers (payers of individual income tax on dependent activities). More information is available on the Financial Administration’s website.
   
• The concept of the “payer’s cash register” will be cancelled from 1 January 2024. Those cash registers were organisational units of a taxpayer where the taxpayer’s obligations under law were discharged (tax collection, withholding and securing). After the cancellation, rights and duties will be passed from the payer’s cash register to the cash register’s providers. In other words, providers and taxpayers will newly discharge the obligations in their own name and under their own tax ID. You can find more information on the Financial Administration’s website.
   
• A law that amends laws related to the financial market’s enhancement was send to the Collection of Laws (Parliamentary Press No. 474). This law changes (among other things) taxation of employee stock ownership plans and modifies Section 34c (5) of the Income Tax Act (deductible research and development item). The law also contains a long-term investment product. The government will support establishment of individualised pension reserves for example through investments to investment funds with this new instrument, which will also bring along tax relieves and advantages. The law is expected to come into force on 1 January 2024.
   
• A law on compensatory taxes is to be published in the Collection of Laws (Parliamentary Press No. 515). This law is expected to come into force on 1 January 2024.
                                                    
• Employee benefits will dramatically change from 1 January 2024. In this context, the Financial Administration published the Methodological Information on Employee Benefits from 1 January 2024 on their website on 22 December 2023; you can read it here.
   
• It is possible to register for, deregister and change the flat rate tax’s tax bracket until 10 January 2024, and the level of monthly advances will grow from 1 January 2024. The Financial Administration explains conditions and a procedure in entering into the flat rate tax regime on their website. You can read more about changes in the advances on our blog.
   
• An obligation to file an immovable asset tax return for 2024 may arise to you in connection with an amendment to the Act on Tax on Immovable Assets. The Financial Administration published a clear summary of situations where such obligation applies to you on their website. Tax rates applicable to immovable assets for 2024 have been increased by 80% in average. The change in tax rates does not result in taxpayers being obliged to file a return. The Financial Administration also published a description of major changes in the Act on Tax on Immovable Assets for 2024.
   
• You can now use DIS+ (a data information box) to fill in an immovable asset tax return; this box provides you with a chance to pre-fill in data from a tax office and real estate cadastre. The Financial Administration published a detailed manual on their website.
   
• The last month of 2023 was rich in Financial Newsletters published on the Financial Administration’s website; please find below a list and main topics thereof:
  • Financial Newsletters Nos. 14/2023 and 15/2023 inform about changes in double taxation treaties between the Czech Republic and  the United Mexican States, and the Czech Republic and the Armenian Republic.
  • Financial Newsletter No. 16/2023 contains a tax calendar with deadlines for tax liabilities in 2024.
  • Financial Newsletter No. 17/2023 informs about changes in the Czech Accounting  Standards for entities keeping their accounting records in compliance with Regulations Nos. 500/2002 Coll., 501/2002 Coll., 502/2002 Coll., and 504/2002 Coll., in connection with the functional currency’s introduction.
  • The Tax Office informs about how to correctly pay tax to a customs authority in Financial Newsletter No. 18/2023.
  • By having issued Financial Newsletter No. 19/2023, the Ministry of Finance discharged their duty imposed by a Tax Code to publish a listing of tax types and parts thereof, on which tax offices keep personal tax accounts and to whose relevant bank accounts payments are received from taxpayers.
     
• The Regulation on Changes in Rates of the Basic Compensation for the Use of Road Motor Vehicles and Meal Allowances, and on Determining the Average Price of Fuels for the Purpose of Providing Travel Allowances for 2024 have not been published. (Information as of 27 December 2023.)

Michaela Kozminská                                         Marek Švanda
kozminska@edmutilitas.cz                                svanda@edmutilitas.cz