Blog about taxes

Changes in VAT rates The consolidation package of measures brought changes also in the Czech VAT. In particular, the VAT rates have changed. Instead of the existing 2 reduced rates: 15% and 10% from 1 January 2024 will be reintroduced only one – 12%. The basic rate will remain unchanged.  Transfer between different VAT rates...

President Petr Pavel has signed the “Konsolidační balíček” – a package of measures to revitalise the Czech Republic’s economy, which will reduce the budget deficit by CZK 150 billion totally in the next two years. The measures out of 65 amendments to laws will start to take effect on 1 January 2024. We have selected...

From 2023, the income limit for the possibility of being a single tax payer has been increased to 2 million kronor, with three levels of taxation introduced. When switching to a flat rate tax system (paušální daň), a self-employed person (OSVČ) gets rid of the obligation to declare income tax and to report to the social and health insurance...

How to do business with blacklisted companies In recent years, there has been a significant increase in the number of companies that are blacklisted and become unreliable VAT payers. Entrepreneurs and companies should treat transactions with such organizations with caution. According to the legislation, an unreliable VAT payer is considered to be a taxpayer who...

Currently and until the end of September, the so-called “tax holiday” according to Act 182/2023 Coll. and the “insurance holiday” according to Act 181/2023 Coll. are in effect. This is an action from the state, which allows you to get rid of penalties and other costs related to taxes and social contributions not paid on time. The tax holiday applies...

Value Added Tax (VAT) is a tax that is applied at every stage of the production and sale of goods and services. However, VAT payers are entitled to a refund for this tax from the budget of Czechia. In this article, we will talk about the terms and conditions that must be observed in order...

It’s useful for all tax-paying residents of the Czech Republic to know that if you didn’t manage to file a tax return before 3.4.2023, for any reason, don’t be upset since there is one more opportunity to avoid any penalties! You can submit a report in electronic form until 2.5.2023. And we’ll show you how...

In this article, we’ll go over the various kinds of taxation on investment income, such as dividends, interest on deposits, debt holdings, P2P loans, sales of shares, cryptocurrencies, real estate, and several other investment vehicles. Income from the investment categories mentioned can be divided into two groups: Income from ownership, §8 of the Income Tax...

Mandatory registration as a value added tax (VAT) payer usually occurs where turnover exceeds 1 million Czech crowns within 12 consecutive calendar months. An exception does include entrepreneurs who only make non-refundable transactions, which are exempt from tax.  From January 2023, a large package of tax changes will come into effect. The most anticipated new...

The international company DoMyTax is expanding its portfolio of services to the Middle East (UAE)! This means that you can now receive UAE tax advice, company registration, bookkeeping and audit services in the UAE. Full list of jurisdictions served today: UAE 🇦🇪, Czech Republic 🇨🇿, Poland 🇵🇱, Lithuania 🇱🇹 and Germany🇩🇪. Now you can easily...

It is more difficult to withdraw money from your own business than you might think. In fact, the rules around withdrawing money create problems for business owners, due to tax law regulations. However, we can guide you through some legal solutions to these issues.  Withdrawing funds through dividend payments:  Many experienced tax consultants consider dividend...

An invoice (daňový / účetní doklad / faktura) is a document that is used to submit a request for payment for services or goods. In the Czech Republic, there is no specific law that regulates the rules for its preparation, the law points out only the mandatory data that has to be included in the...