Skip to main content

Czech Republic: Proposed tax amendments include increase in R&D allowance

Draft legislation currently being considered by lower house of Parliament

Share
June 13, 2025

The draft “Act on Single Monthly Employer Reporting,” currently being considered by the lower house of Parliament (the Chamber of Deputies), includes the following amendments to the Income Tax Act:

  • Changes arising from the planned abolition of withholding tax on employment from January 1, 2027
  • Abolition of the CZK 40 million limit for the exemption of income from the sale of securities, business shares/interests, and crypto currencies effective January 1, 2026
  • Amendments related to employee stock and option plans (ESOPs) and non-monetary employee benefits
  • Increase in research and development (R&D) allowance
  • Increase in the limit for receivables that can covered by 100% adjustments

Read a May 2025 report prepared by the KPMG member firm in the Czech Republic

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.
All fields with an asterisk (*) are required.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline