Accounting UOL Newsletter November - What's new in tax and accounting?

This month we bring you a new overview of tax, accounting and legislation. From pension reform and VAT harmonisation to the return of tax credits and new obligations for employers, the government is planning a number of changes. You'll also find out about electronic communications with insurers, new rules on health and safety and accident reporting, changes to pension savings and how the Inland Revenue is tackling fraud.

Accounting and tax news

• We will cap retirement at 65, the new government promises. It wants to motivate pensioners to work by increasing their pensions by 1.5 % per year of service.
• The new government is planning changes to VAT. It wants to unify VAT on catering at 12 %, introduce a 0% tax on medicines and increase the limit for compulsory payers.
• Tax credits are due to return. The government's statement also includes a plan to bring back the student discount and tuition fees. Corporation tax is set to fall to 19 %.
• Tips could be exempt. The new government is probably responding to the fact that taxation is already often not happening in practice.
• EET will return in 2027. Small traders will be exempted.
• Count on a single employer report. From 2026 it will replace the existing reports and will also include FTEs.
• Employers only make arrangements with the insurance company electronically. As of January, the law requires reports and notices to be in electronic form.
• Minimum pensions will rise. As of January, the amounts will be CZK 9,800 (old-age and disability pension III), CZK 7,350 (widow's pension II), CZK 6,534 (widower's pension I) and CZK 6,860 (orphan's pension). You do not have to apply for an increase.
• Bolt passes the data to the Revenue. The company is committed to systematically reporting shipping information.
• Beware of disguised employment. The Inland Revenue warns against bogus agencies that hide employment behind invoices for the delivery of work.
• Temporary agricultural workers get a discount and more hours. Starting next year, a seasonal temporary worker can work 1,280 hours on a FTE and claim a 7.1 % discount on social security.
• A register of employees will be set up. Related to the single employer's report. Companies will register themselves and their workers.
• Tax Echo III will highlight errors in your pension. This time it will be for discrepancies for 2023 and 2024. People will get the opportunity to correct the errors without penalty.
• Sick pay reduction thresholds will rise. Specifically to CZK 1633, CZK 2449 and CZK 4897.
• State insureds do not have to pay health insurance premiums. This news applies from next year to self-employed persons who are also students, pensioners, etc.
• You can already handle OHS internally. Since November, companies with up to 25 employees do not need external trainers, as long as they can prove the necessary knowledge.
• You report injuries electronically. From January onwards, the recording of injuries will take place via the SÚIP portal.
• Do you work in hazardous occupations? As of January, you must contribute 4 % to your people's pensions.
• Don't forget to claim your gifts. Only 9 % businesses and 11 % self-employed people deduct them. Every £100 donation saves you £15 in tax.
• Scammers posing as the IRS. A new wave of fake e-mails and text messages abuses the logo of the Financial Administration and the Citizen Portal.
• The self-employed are breaking records again. They have increased by 24,000 year-on-year and currently number 1.18 million. The record is also due to the shvarcsystem.
• The IRS was confiscating iPhones and clothing. Within the framework of the Lupa and Surveillance actions, it seized CZK 30 million worth of goods.

Don't forget!

• Pay your 2nd installment of property taxes by December 1. Valid for taxpayers with taxes over CZK 5,000.
• Pay your quarterly or semi-annual windfall tax deposit by December 15.
• File your excise tax return for the 3rd quarter of 2025 by 31 December.

UOL Accounting / gnews.cz - GH