Publication of the tax package in the Collection of Laws (No. 978)

Despite the complicated process of adoption, the tax package was finally published in the Collection of Laws just on December 31, 2020. This means that the law came into force on January 1, 2021.

As for the Act on Income Taxes, the following changes occur in particular:

• abolition of the so-called super-gross wage and introduction of two tax rates for natural person income tax (15 % and 23 %); concurrently, the so-called solidarity tax surcharge of 7 % is abolished;
• introduction of the possibility to exempt employer’s cash meal allowances for employees up to a certain amount (the so-called lump sum meal voucher allowance);
• increase of the basic tax abatement per taxpayer from CZK 24,840 to CZK 27,840 for the year 2021 (i.e. from CZK 2,070 to CZK 2,320 per month);
• abolition of the limit for a tax bonus for a dependent child in the amount of CZK 60,300 per year;
• abolition of the special category of intangible assets (i.e. also the tax depreciation of intangible assets; newly, accounting depreciation of long-term intangible assets will be claimed as a tax-deductible expense);
• increase of the limit for tax depreciation of tangible assets and their technical improvement from CZK 40,000 to CZK 80,000 for tangible assets acquired and technical improvement completed since January 1, 2020;
• the possibility of exploiting extraordinary depreciation for tangible assets of the 1^st and 2^nd depreciation groups, acquired from January 1, 2020 to December 31, 2021; or
• simplification of the notification of exempt income going abroad.

publikováno 08.01.2021