TAX NEWS 30.11.2020. We wish you all the best in the upcoming Christmas period and bring you a summary of news and changes that the Czech tax law has been through during the course of the last month.
2021 Income Tax law amendments
Towards the end of November, the media attention has been focused squarely on the so-called 2021 Tax Package, which was approved by the Parliament in its third reading. The law is now subject to review by the Senate. You can read about what the Tax Package entails and which amendments will be reviewed by the Senate here.
Lump sum taxation for entrepreneurs and other self-employed individuals
The Senate fully endorsed the new law implementing the concept of the lump sum tax for entrepreneurs and other self-employed individuals and the law now awaits its signature by the President. Go live of the lump sum taxation is expected as of 1 January 2021. In our article, you’ll find out what you should consider and which steps you should make if you want to participate in the lump sum taxation scheme.
Small-scale employment with income of up to CZK 3,500
Not only HR staff will appreciate the possibility to increase monthly payments to employees working on the basis of one-off work arrangements such that the payments would be exempt from mandatory health and social security payments. You can read more information in our article here.
Increase of minimum wages
As every year, minimum wages shall increase as of 1 January 2021. The increase triggers updates to various tax-related parameters, such as kindergarten subsidies, tax credits or limits for taxation of pensions. You can read a short summary in our article.
We wish you a peaceful Advent season.