On 14 December 2023, according to an update released by the Czech Republic Parliament, President Petr Pavel signed the law to implement the Pillar 2 global minimum tax under the Council Directive (EU) 2022/2523 of 14 December 2022. On 20 December 2023, the law was published in the Official Gazette.
This includes the introduction of the Pillar 2 income inclusion rule (IIR) and the undertaxed payment/profit rule (UTPR) to ensure a minimum tax level of 15% for MNE groups with annual consolidated revenue of at least EUR 750 million. The draft law also includes a provision for a qualified domestic minimum top-up tax (QDMTT) for members of in-scope groups, as well as certain safe harbor rules.
The law applies in respect of financial years beginning on or after 31 December 2023, except for the UTPR, which applies in respect of financial years beginning on or after 31 December 2024.
