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Dear Readers,

Please find below our short news for March 2025:

• Please be advised that the deadline for filing a tax bill for withholding tax at a special tax rate for taxation period 2024 will expire on 1 April 2025.
   
• In addition to that, the deadline for filing an income tax return and payment of income tax for 2024 (where the tax return was filed within the basic deadline pursuant to Section 136 (1) of the Tax Code, but not electronically) will expire on 1 April 2025.
   
• The deadline for filing an income tax return and payment of income tax for 2024 where the tax return was not filed within the basic deadline pursuant to Section 136 (1) of the Tax Code and will be filed electronically will expire on 2 May 2025.
   
• The Ministry of Industry and Trade launched an online database of information duties for business persons where they can find a listing of all their legislative duties in a single place. The database is available at https://dip.gov.cz
   
• An amendment to the Energy Act, which contains a proposal to cancel special write-offs of solar equipment pursuant to Section 30b of the Income Tax Act, was published in the Collection of Laws as Act No. 87/2025 Coll. on 31 March 2025. This law comes into force on 1 August 2025.
   
• A Government’s bill, which amends certain laws in the tax administration field (Parliamentary Press No. 784), is to be referred to the third reading in the Chamber of Deputies. This bill is primarily composed of an amendment to the Tax Code, which includes a set of partial changes in response to the reform of the Customs Administration of the Czech Republic, the decision-making practice and the latest developments in related fields of law.
   
• The Government submitted a Bill on a Uniform Monthly Employers’ Report to the Chamber of Deputies on 11 March 2025. We have informed you about changes for employers, which would result from this law’s adoption, in an article on our website.
   
• A Government’s bill, which regulates certain laws in connection with the adoption of the Act on Housing Support (Parliamentary Press No. 730), is expected to be referred to the third reading in the Chamber of Deputies. Related amendments to Act No. 586/1992 Coll., on Income Tax (the “ITA”), introduce an option to apply a tax deduction of interest on a housing loan also for housing cooperative members. We addressed the proposed changes in an article on our website.
   
• Decree No. 76/2025 Coll., which amends Decree No. 525/2020 Coll., on Forms for Filing Income Taxes, as amended, was published in the Collection of Deeds as of 20 March 2025. An Application for Remittance of a Missing Amount Paid by an Income Tax Payer to Taxpayers in Monthly Tax Bonuses and an Application for Remittance of a Missing Amount Paid by an Income Tax Payer to Taxpayers in an Additional Payment of a Tax Bonus from an Annual Settlement of Advances and Tax Benefits Pursuant to Section 35d (5) and (9) of the Income Tax Act are considered forms filed under the Tax Code by the Decree and published as appendices. This Decree comes into force on 1 May 2025.
   
• The Ministry of Finance submitted a Draft Decree On the Method of Calculating the Floor Area for the Purposes of Value Added Tax on 27 March 2025. The Decree is to regulate the method of calculating the floor area of a structure or a part thereof and, at the same time, the method of calculating the floor area of a room, and is proposed to come into force on 1 July 2025.
   
• An amendment to the Labour Code was approved by the Chamber of Deputies in the third reading on 7 March 2025 and was referred to the Senate (Parliamentary Press No. 775). If the amendment is approved, it will result in the following changes: a notice period will run immediately from the notice’s delivery; a possibility to extend the probation period to four months for regular employees and eight months for managers; a possibility to have a salary paid in a foreign currency; a possibility to shorten daily rest in the event of emergencies; a change in the rules for resignation for medical reasons; and a possibility for adolescents to work from the age of 14, etc.
   
• Act No. 84/2025 Coll., which amends the Act on the Provision of a Child Care Service in a Children’s Group and Additional Related Laws, was published in the Collection of Deeds on 27 March 2025. This law contains, among others, an amendment to the Income Tax Act to regulate taxation of employee stock and option plans. In addition to this, the Financial Administration published draft Information of the General Financial Directorate on 24 March 2025, this draft concerning an amendment to the Income Tax Act, which regulates the tax regime in employee stock and option plans. This Information of the GFD is expected to be amended and published in a final version in the near future.
   
• On 5 March 2025, the Ministry of Finance of the Czech Republic issued Financial Newsletter No. 6/2025, which contains a Decision on Remission of Interest on a Deferred Amount of the Tax’s Payment Due to an Emergency Involving Flood or High Water (from 12 September 2024 through the end of 2024), provided that the tax, the non-payment of which resulted in the interest, was paid. As a consequence, it is not necessary to file an application for remission of such interest.
   
• An amendment to the Act on International Cooperation in the Tax Field, which implements rules for information exchange for the purposes of minimum tax in the EU (DAC 9) into Czech legislation, is to be commented on by the Ministry of Finance.
   
• A VAT in Digital Age (ViDA) legislative package was published in the Official Journal of the EU on 25 March 2025. The directive, regulation and implementing regulation will come into force on 14 April 2025.
   
• We informed you about ESG news in March 2025 in a dedicated article.
   
• Summarised information about changes effective since 2024, which concern both employees and business persons and other taxpayers, was published on the Financial Administration’s website. In order to support taxpayers and assist them in discharging their tax duties, the Financial Administration visits municipalities and launched a consultancy helpline.

Jitka Sobotková
sobotkova@clarksonhyde.cz