Taxes and Accounting

Do you pay royalties abroad? And are you sure who is the actual recipient? Find out when you pay the full amount of withholding tax on royalties and when you can reduce it on the basis of double taxation. What are royalties? In the Czech environment, royalties are defined by the Income Tax Act (§19 of the Income Tax Act). Such…

The Ministry of Finance is working intensively on an extensive amendment to the Value Added Tax Act. The first changes will come into force on 1 January 2025, with more to follow until 2027. Changes to the Value Added Tax Act The current version of the VAT Act can be found under 235/2004 Coll. We have prepared an overview of the main changes…

The amendment to the Labour Code changes many of the previously established rules for performance of work agreements (DPPs). The popular method of earning extra income is now subject not only to central registration but also to new limits for levies. Join us for a look at the main changes that will affect DPPs in 2024/2025*. …

Are you planning to sell your apartment and wondering how to tax this income? The procedure for selling a condominium is different from selling a privately owned unit. We'll explain how to properly tax the income from the sale of a personal and cooperative apartment and when you can avoid this tax altogether. Taxation of income from the sale of a…

The popularity of company nurseries among employee benefits is steadily growing. Running a company nursery makes it easier for parents to return to work, reduces recruitment costs for new employees and saves parents time and money. However, the consolidation package has brought uncertainty to an established model and companies need to revalue this…

Have you set up a business and want to learn more about how to calculate your profit and loss, which types of profit and loss you can evaluate and how to draw on them in the future? Here is an overview of the most important profitability indicators. Why pay attention to the economic result? The profit and loss statement tells you about the…

The current accounting rules are based on legislation that was introduced in 1991. Although there have been a number of amendments to the Act itself and the related implementing decrees, they are often no longer sufficient for the current economic reality. The State is aware of this and is therefore preparing a completely new Accounting Act. Find…

Have you started a business and your company was established in the last 3 months of the year? Postpone your first corporation tax return until next year! We will tell you how to proceed. Who can extend their accounting period? If your company was established between 1 October and 31 December, you can apply to the tax office for an extension…

Every year in the spring, (not only) entrepreneurs have an unpleasant duty - filling in the tax return form. We will tell you how to deal with the document. Who fills in the tax return and how? According to the Income Tax Act (ITA), all entrepreneurs with an annual taxable income of over CZK 50,000 (or CZK 20,000 if you are an employed…

You pay one amount each month, which includes social security, health insurance and income tax. The flat-rate tax has relieved you of annoying paperwork so you don't have to worry about tax returns. But don't rejoice prematurely - it doesn't always apply! Find out which exemptions to look out for. Flat-rate tax and tax returns - when to…

The due date for the payment of the real estate tax (or the first instalment) is 31 May 2024. Last year, in order to save money, the tax administration abolished the paper postal vouchers that were traditionally sent to real estate taxpayers during May. Payment of the tax by postal order has not been charged until now, which is changing.…

Running a business as a sideline is an ideal option for anyone who wants to earn extra money for their studies, employment or even maternity leave. Compared to your main gainful activity, it brings a number of advantages - you pay lower taxes and often do not even have to pay social security and health insurance contributions. What are the other…

As part of the consolidation of public finances, the government has introduced measures to help the over-indebted treasury, the so-called consolidation or recovery package. It was signed by the President on Wednesday 22 November 2023 and subsequently published in the Collection of Laws. Most of the adjustments concern taxes and other compulsory…

The flat tax promises less administration for businesses from 2021 - but it will only pay off for some of them. The following lines will help you find out if you're one of them. What is a flat tax? Flat-rate tax is a special type of tax that self-employed people can volunteer for. It is a flat monthly amount that includes a payment for…

Millions of Czechs file personal income tax returns each year. However, many of them do not know how and when to submit it correctly. That's why we've summarised the most important rules for you. Read the most important facts: When to file your tax return? Who files a tax return? When is income tax due? What if you file late?…

As a business, you file a tax return every year. This tells you how much money you pay to the government in income tax. We will advise you on how to correctly determine the tax base and the tax itself. How is income tax calculated? Personal income tax is calculated as 15% of your tax base. Taxpayers with high earnings then apply a rate of 23…

The recently adopted tax consolidation package brings a number of innovations. Find out the main changes to the real estate tax, who has to file a new tax return and how to do it. What's changing from 2024? Adjustments to the paved area rules One of the modified areas is the so-called paved area. Until now, taxation of paved area was only…

Fixed assets are usually the most expensive part of a business. However, it comes with a complex depreciation obligation. We'll advise you on how to calculate depreciation so it doesn't make your head spin. What is depreciation? Depreciation is an accounting measure of the wear and tear on tangible and intangible fixed assets. Unlike current…

The purchase of property, machinery or a company car will also be reflected in your financial statements. How to value and account for the assets correctly so that everything stands up to scrutiny from the tax office? Just keep a few principles in mind. What is a fixed asset? Several regulations govern fixed assets from an accounting and…

The Financial Administration informed about the launch of a pilot project for pre-filling the real estate tax return. Find out how it works and make your work with the forms easier. The new feature will make it easier for you to fill in the form Finding out data and filling in the real estate tax return is quite complicated. That's why the…