The bill is now awaiting the president’s signature.
The Czech Republic’s Chamber of Deputies (Lower House of Parliament) passed a new law on 10 September 2025, introducing significant changes to employer reporting and tax regulations, particularly affecting the R&D allowance system.
Starting 1 January 2026, the new legislation, “Act amending various laws in connection with the adoption of the Unified Monthly Employer Reporting Act” which allows companies to claim a 150% R&D allowance, capped at CZK 50 million per group. For R&D costs exceeding this cap, a 100% allowance will apply.
Additionally, businesses will now have the option to carry forward any unused R&D allowances for up to five years.
The bill is now awaiting the president’s signature.