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.
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