This month, we bring you a new overview of developments in the areas of taxation, accounting, and legislation. The government is planning a number of changes, ranging from pension reform and the harmonization of VAT to the reinstatement of tax credits and new obligations for employers. You will also learn about electronic communication with insurance companies, new rules for occupational safety and accident reporting, changes in pension savings, and how the Tax Administration is combating fraud.

News from the world of accounting and taxation

  • The government plans to set the retirement age at 65. To incentivize people to continue working, the pension will be increased by 1.5% for each year worked.
  • The new government is planning changes to VAT. They want to harmonize VAT on catering services at 12%, introduce a 0% VAT rate on medicines, and increase the threshold for mandatory VAT registration.
  • Tax credits are making a comeback. The government's statement also includes plans to reinstate the student tax credit and the tax credit for nursery school fees. The corporate income tax rate is expected to decrease to 19%.
  • Tips may be exempt from taxation. The new government is likely responding to the fact that, in practice, tips are often not taxed.
  • The electronic sales register (EET) will be reintroduced in 2027. Small businesses will be exempt.
  • Expect a unified employer reporting system. From 2026, this will replace the existing reporting forms and will also include contracts for temporary work (DPP).
  • Employers will only communicate with insurance companies electronically. From January, reports and notifications must be submitted in electronic form.
  • Minimum pensions will increase. From January, the amounts will be 9,800 CZK (for old age and disability III degree), 7,350 CZK (for II degree and widow's pension), 6,534 CZK (for I degree), and 6,860 CZK (for orphans' pension). You do not need to apply for this increase.
  • Bolt is sharing data with the Tax Administration. The company has committed to systematically reporting information about transportation services.
  • Beware of disguised employment. The Tax Administration is warning against fictitious agencies that hide employment behind invoices for the provision of services.
  • Seasonal workers in agriculture will receive a discount and more working hours. From next year, seasonal workers can work up to 1280 hours under a temporary work contract (DPP) and receive a 7.1% social security discount.
  • A register of employees will be created. This is related to the unified employer reporting system. Companies will register themselves and their employees.
  • "Tax Echo III" will alert you to errors in your pension statements. This time, it will focus on discrepancies for the years 2023 and 2024. People will have the opportunity to correct these errors without penalties.
  • The reduction limits for sick pay will increase. Specifically, to 1,633 CZK, 2,449 CZK, and 4,897 CZK.
  • Self-employed individuals who are also students or pensioners may not have to pay advance payments for health insurance. This new rule applies from next year.
  • Companies with fewer than 25 employees can now handle occupational safety internally. From November, they do not need external trainers if they can demonstrate the necessary knowledge.
  • Accidents must be reported electronically. From January, accident reporting will be done through the SÚIP portal.
  • Do you employ people in high-risk professions? From January, you must contribute 4% to their pension funds.
  • Don't forget to claim your donations. Only 9% of companies and 11% of self-employed individuals claim them. Every 100 CZK of donation saves you 15 CZK in taxes.
  • Scammers are impersonating tax authorities. A new wave of fake emails and SMS messages is using the logo of the Tax Administration and the Citizen Portal.
  • Self-employed individuals are breaking records again. There are 24,000 more self-employed individuals year-on-year, bringing the total to 1.18 million. The "shadow economy" is also contributing to this record.
  • The Tax Administration seized iPhones and clothing. As part of the "Lupa" and "Supervision" operations, goods worth 30 million CZK were seized.

Don't forget!

  • Pay the second installment of property tax by December 1st. This applies to taxpayers with property tax exceeding 5,000 CZK.
  • Pay the quarterly or semi-annual advance tax payment for unexpected income by December 15th.
  • File a tax return for the refund of excise tax for the third quarter of 2025 by December 31st.

UOL Accounting / gnews.cz – GH