Taxes and Accounting

There are over 500,000 registered legal entities in the Czech Republic, but 20% of them are not actually doing business. The number of "dormant companies" has declined in recent years, but their owners should beware. What about the tax return for an inactive company with no income? Find out all about zero returns. Business tax returns: what if…

The year 2025 brought new rules for the taxation of cryptocurrencies and introduced a value and time test for their tax exemption. Make sure you keep proper records of your income from cryptocurrency transactions - such as holding, exchanging or selling - to be sure you know if and how to pay taxes on them. Cryptocurrencies are a big topic and,…

Choosing a car for a company is not the same as choosing one for your family. While with a family car you will be mainly interested in comfort, consumption or safety, with a company car it is all about how it will affect your taxes, VAT deductions and running costs. The car does not belong to you, but to the company. We'll introduce you to how to…

No entrepreneur can avoid registering for value added tax (VAT) when sales are higher. The obligation to pay VAT depends on the amount of turnover. We will advise you how to calculate it correctly. Who is obliged to pay VAT? According to Section 6 of the VAT Act, a taxable person (simplified as an entrepreneur carrying out economic activity)…

What does it mean that a company or self-employed person is a VAT payer, how to register for VAT and when is it worthwhile? Find out the answers to these questions in the article. Who is a VAT payer? A VAT or value added tax payer is a legal or natural person who can purchase goods or services at a "discount" for the purposes of their…

Amendments to the law change many of the rules that have been in place for performance work agreements (PWAs). This popular way of earning extra income is not only subject to central registration, but also to new rules and a cap on levies. Join us for a look at the main changes affecting PPAs in 2024/2025*. What is a…

While some voluntarily register for VAT, others want to avoid the VAT regime - therefore, when they exceed the turnover threshold for compulsory VAT registration, they prefer to set up a new company and charge from scratch. Find out why this is an inappropriate practice. Article content: When does a company become…

Do you know what your employee is entitled to when you send them on a business trip and what you must not forget? Find out under what conditions an employee can go on a business trip and what expenses are involved. What is a business trip? A business trip is nothing more than the legislative designation of the colloquial term business trip. The…

Determining tax residence can be confusing – whether you’re a Czech working abroad or a foreigner working in Czechia. Discover the criteria that will help you know where you should be paying income tax. General Rules for Tax Residence It sounds inviting – you find a country with an interesting social or tax system and choose to start your business…

When looking for ways to lower taxation, athletes often toy with the idea of changing their tax domicile. However, such a change is not possible for everyone and will only bring real savings to some. Find out under what conditions an athlete can benefit from a change in tax residency without unnecessary risk. The key to taxing…

The minimum wage is not only the lowest possible remuneration for work, but also affects other amounts. Find out how it works, who sets it, how to calculate the correct minimum wage per hour for different types of jobs and what changes to prepare for from 2025. What is the minimum wage and how is it set? Minimum wage means the lowest allowable pay…

The fundamental change to the Accounting Act will lead to amendments to a number of accompanying laws. One of them is the Income Tax Act (ITA), which should undergo a complete transformation. Find out how the terminology and tax depreciation rules you have been used to will change. Planned changes to the Income Tax Act The amended Income Tax Act…

All companies registered in the Commercial Register, associations, societies, institutes or foundations must publish their accounts. It tells about the company's management, its financial stability and its ability to stand in the future. Find out what it contains and why, and how to navigate through it. What are financial statements? …

Do you pay royalties abroad? And are you sure who is the actual recipient? Find out when you pay the full amount of withholding tax on royalties and when you can reduce it on the basis of double taxation. What are royalties? In the Czech environment, royalties are defined by the Income Tax Act (§19 of the Income Tax Act). Such…

Are you planning to sell your apartment and wondering how to tax this income? The procedure for selling a condominium is different from selling a privately owned unit. We'll explain how to properly tax the income from the sale of a personal and cooperative apartment and when you can avoid this tax altogether. Taxation of income from the sale of a…

The popularity of company nurseries among employee benefits is steadily growing. Running a company nursery makes it easier for parents to return to work, reduces recruitment costs for new employees and saves parents time and money. However, the consolidation package has brought uncertainty to an established model and companies need to revalue this…

Have you set up a business and want to learn more about how to calculate your profit and loss, which types of profit and loss you can evaluate and how to draw on them in the future? Here is an overview of the most important profitability indicators. Why pay attention to the economic result? The profit and loss statement tells you about the…

The current accounting rules are based on legislation that was introduced in 1991. Although there have been a number of amendments to the Act itself and the related implementing decrees, they are often no longer sufficient for the current economic reality. The State is aware of this and is therefore preparing a completely new Accounting Act. Find…

The due date for the payment of the real estate tax (or the first instalment) is 31 May 2024. Last year, in order to save money, the tax administration abolished the paper postal vouchers that were traditionally sent to real estate taxpayers during May. Payment of the tax by postal order has not been charged until now, which is changing.…

As part of the consolidation of public finances, the government has introduced measures to help the over-indebted treasury, the so-called consolidation or recovery package. It was signed by the President on Wednesday 22 November 2023 and subsequently published in the Collection of Laws. Most of the adjustments concern taxes and other compulsory…