Other taxes and regulations

Compensatory tax

We would like to remind you that the Compensatory Tax Act was approved in 2024 as a part of plans for the blanket taxation of big multinational corporations. Such groups should be effectively taxed minimally at the rate of 15 per cent on their accounting profit. If a company is a payer of compensatory tax, it is now necessary to mention it in the appendix to its financial statements.

ESG reporting

The obligation of ESG reporting (i.e. the obligation to report on sustainability in the firm's annual report) has been extended as of 1 January 2025. From 2025, ESG reporting will concern big companies that comply with at least two of the three following conditions: net turnover of least EUR 50 million, an average number of employees at least 250, and assets amounting to at least EUR 25 million. In the future, other big firms will be obliged to publish their sustainability reports.

The ViDA directive and the modernisation of the rules for the digitalisation of VAT in the EU

The European Union has approved the ViDA directive (VAT in the Digital Age). By 2030, a new system of digital VAT reporting in "real time" via electronic invoicing for intra-community transactions will be introduced. This will replace the recapitulative statement to VAT. Domestic transactions will be affected by this from 2035 at the latest, and this will replace the VAT statement ("kontrolní hlášení"). The state administration will be able to monitor the flow of goods and services faster and more precisely. Relevant data will have to be entered in the system no later than ten days after the realisation of a transaction or by the end of the month in question.