On 13 October 2023, the Czech Chamber of Deputies approved a tax reform bill that would consolidate the two reduced rates of value-added tax (VAT) and increase the corporate tax rate.
The draft law on the consolidation of public budgets includes increasing the corporate tax rate from 19 percent to 21 percent. Additionally, the new legislation aims to merge the reduced value-added tax (VAT) rates by combining the existing 10 and 15 percent rates into a single 12 percent rate. This bill now awaits approval from the Senate.
The Chamber has proposed implementing a 12 percent VAT rate on printed media and increasing property tax rates substantially. Lawmakers have proposed to allow companies to prepare accounts in EUR, USD, or GBP if most of their transactions are conducted in that particular currency.
The legislation further includes provisions for repealing 22 tax exemptions.
The legislation also includes provisions for an increase in excise taxes, gambling taxes, and revised limits on employee benefit deductions.
These changes would be effective from 1 January 2024.
