Czech Republic: Legislation introducing top-up tax, implementing EU directive on global minimum tax, now effective
The law introducing a top-up tax to implement the EU directive on global minimum tax became effective on 31 December 2023.
Legislation introducing top-up tax, implementing EU directive on global minimum tax
The law introducing a top-up tax to implement the EU directive on global minimum tax became effective on 31 December 2023. Read TaxNewsFlash
Thus, for tax periods beginning after 31 December 2023, companies and permanent establishments of groups with consolidated revenues exceeding €750 million will be subject to new taxes at a rate equal to the difference between the 15% rate and the specifically calculated effective tax rate of the group in the Czech Republic.
The Ministry of Finance also informally clarified that the transitional safe harbor rule based on the information contained in the country-by-country (CbC) report may be transitionally applied for purposes of the Czech top-up tax.
Read a January 2024 report prepared by the KPMG member firm in the Czech Republic
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