On 2 December 2022, a “tax package” was published in the Collection of Laws under number 366/2022 Coll., which contains the following changes:

1. The Windfall Tax (Exceptional Gains Tax) proposal, where the conclusions we informed you about here apply.
2. Other changes in the corporate income tax that we have mentioned here. 
3. Changes in personal income tax, which we have summarised clearly here.
4. An amendment to the VAT Act that increases the threshold, from which a taxable person becomes a VAT payer by law from CZK 1 million to CZK 2 million for 12 consecutive calendar months. It is the date of publication of the amendment that may be relevant for those, whose turnover is within this range. We have summarised the most important obligations/options arising from this here.

The entire amendment is to take effect from 1 January 2023, except for the transitional provisions in Article II(2) to (5) and (8) to (10), which regulate the transition to the higher limit for statutory payers. These are to enter into force on the day following the date of publication of the amendment in the Collection of Laws.

Author: Daniela Riegel