Czech Republic: Draft policy statement of incoming government coalition includes mandatory transfer pricing documentation

Draft tax policy statement proposes various direct and indirect tax changes.

Share
november 12, 2025

The incoming government coalition presented its draft tax policy statement, proposing various direct and indirect tax changes, including:

  • Introduction of mandatory transfer pricing documentation for multinational enterprise (MNE) groups
  • Reduction of the corporate income tax rate from 21% to 19%
  • Enhanced depreciation and research and development (R&D) and investment measures
  • Increase in the limit for mandatory value added tax (VAT) registration above CZK 2 million (subject to EU approval)
  • Unification of VAT on catering services and the serving of non-alcoholic beverages at a 12% rate and introduction of 0% VAT on prescription drugs
  • Repeal of automatic indexation for real estate tax using inflation coefficients

Read a November 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