The most important tax and accounting changes in 2021

We give you a brief overview of the most important changes in the field of taxes and accounting for in 2021.

TAX NEWS IN 2021

TAX PACKAGE

Perhaps the biggest story at the end of 2020 was the discussed new tax package. The main changes include:

  • abolition of the super-gross wage;
  • changes in depreciation of tangible and intangible assets;
  • flat tax;
  • new lump sum meal allowance.

This package is still awaiting the signature of the President, and therefore the effectiveness of individual provisions will be governed not only by publication in the Collection of Laws but also by transitional provisions. You can find more detailed information on the website of the Ministry of Finance.

INCOME TAX

The Income Tax Act passed an amendment effective from 1 July 2020 that introduces retroactive application of tax losses. This tool speeds up the drawing of tax overpayments by taxpayers, helping them to mitigate the effects of reduced business during the pandemic.

VAT

The taxation of rents has undergone a major change. Real estate for which value added tax cannot be applied has been newly defined.

Due to Brexit, from 1 January 2021, Great Britain became a so-called third country. This also changes the system of VAT reporting, as Britain falls into a new category.

From 1 July 2021, the limits for VAT registration in e-commerce will be adjusted. This change will mainly affect e-shops that sell goods abroad.

TAX CODE

A new wording of the Tax Code is effective from 1 January 2021 (Act No. 283/2020 Sb.). These are the main new items:

  • significant changes and expansion of the tax information box (e.g. the possibility to make submissions via the data box);
  • news with regard to filing and errors in filing;
  • changes in the area of tax inspections (e.g. the possibility to repeat a tax audit when new facts are discovered or a change in the commencement of the tax audit);
  • changes in the deadlines for filing tax returns (e.g. new four-month deadline for electronic submissions);
  • changes in the area of repayable overpayments;
  • significant changes in interest rates (e.g. change in interest on arrears paid by the taxpayer or changes in interest paid by the tax administrator).
  • EET

    Parliament approved the proposal of the Ministry of Finance to postpone all four phases of electronic sales records to 1 January 2023. This step is intended to help business in a difficult situation during the pandemic. You therefore can, but you do not have to, record your sales. Until 2023 the EET is voluntary.

    ACCOUNTING NEWS IN 2021

    The National Accounting Council last year approved three fundamental interpretations, which have an impact on bookkeeping. I-41 explains the processing of loyalty programs in supplier accounting, while I-42 and I-43 deal with the new approach to taking into account foreign exchange rates in financial statements.

    These interpretations advise you on how to simplify and streamline your accounting. However, we must add that any interpretation is only the opinion of the National Accounting Council and is therefore not legally binding. Only courts can issue legally binding opinions.


    These are the most important changes in taxes and accounting that await you in 2021. Don't want to deal with every new rule? Leave your taxes and accounting to us. As professionals, we keep up to date with all the changes and know-how and where to apply them. Write to us and we will arrange a non-binding meeting where we will discuss your situation and find out how we can help you. We will be happy to take care of your taxes and accounting – and you can focus only on your business.


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