Global Daily Tax News, Czech Lower House Agrees Tax Reform Plans, (Oct 17, 2023)

The Czech Chamber of Deputies on October 13, 2023, approved tax reform legislation that would consolidate the two reduced rates of value-added tax and hike the corporate tax rate.

Specifically, the  draft law on the consolidation of public budgets would hike the corporate tax rate from 19 percent to 21 percent. It would also amalgamate the 10 and 15 percent reduced rates of VAT into a single 12 percent rate. It must now be approved by the Senate.

The legislation also provides for the repeal of 22 tax exemptions.

The Chamber also put forward amendments for the introduction of VAT at the 12 percent rate on printed media and a significant hike to property tax rates. Lawmakers have also proposed allowing companies to prepare accounts in EUR, USD, or GBP, if most of their transactions are carried out in that currency.

The law also provides for a hike to excise taxes, to taxes on gambling, and new limits to employee benefit deductions.

The changes would be effective from January 1, 2024.