Income tax
The extraordinary depreciation option continues in 2023
Extraordinary depreciation can be applied by entrepreneurs who acquired selected tangible assets in the period between January 1, 2020 and December 31, 2023.
Increase in the annual income amounts up to which a tax return does not need to be filed
From January 2023, anyone whose annual taxable income exceeds CZK 50,000 will have to file a tax return. Until now, this limit was set at CZK 15,000. Taxpayers who have additional income from employment will have to file a tax return upon reaching CZK 20,000, instead of the current CZK 6,000.
Division of the flat-rate tax into three bands
Whereas previously it was possible to register for the flat-rate tax scheme with annual income from self-employment up to CZK 1,000,000, for 2023 the threshold has been raised to CZK 2,000,000. The increase in this threshold is also tied to the division of the flat-rate tax into three bands with different monthly payment amounts.
Which category an entrepreneur comes under depends on the amount of their annual income and also the type of activity.
Requirement to file tax returns electronically
In connection with the introduction of data boxes, from 2023 entrepreneurs are required to file tax and other returns electronically.
Taxation of windfall profits
A fundamental change is the introduction of a windfall profits tax, which affects the banking and energy sectors.
Value added tax
An increase in the limit for compulsory VAT registration to CZK 2 million
The most important change is an increase in the limit for compulsory VAT registration from CZK 1 million to CZK 2 million.
Lower fines for entrepreneurs in the case of control reports
The tax changes for 2023 also affect control reports. The fines in the case of a control report have been reduced by half, both for self-employed persons and for limited liability companies with one partner. Also, one fine of CZK 10,000 is now automatically waived. As in 2022, in 2023 the tax authorities will also be able to waive fixed fines of CZK 10,000, CZK 30,000 and CZK 50,000 on request.
