Czech Republic: Proposed tax amendments include increase in R&D allowance
Draft legislation currently being considered by lower house of Parliament
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