Czech Republic: Amendment to Income Tax Act in response to new Accounting Act

The Ministry of Finance published a draft amendment to the Income Tax Act in response to the new draft Accounting Act.

The Ministry of Finance published a draft amendment to the Income Tax Act in response to the new draft Accounting Act.

A summary of changes include:

• Changes to asset and debt valuation
• Simplified tax depreciation
• Application of international accounting standards
• Determining the tax base of foreign taxpayers
• A new concept of finance leases
• New definition of the taxable period for legal entities
• Special scheme for taxpayers with accounting records kept in euros
• Transitional provisions
• Other selected changes

The proposed effective date of January 1, 2025, and other parts of the amendment may change during the legislative process.

Read a June 2024 report prepared by the KPMG member firm in the Czech Republic

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