Planned income tax reform would rewrite depreciation rules
The Finance Ministry is preparing a large amendment to the Income Tax Act that follows the new Accounting Act. It would replace today's six depreciation groups with just two, with minimum periods of 60 months and 360 months, and drop the choice between straight-line and accelerated depreciation. Depreciation would be calculated monthly.
The threshold for tangible movable assets would rise from CZK 80,000 to CZK 100,000, and the same CZK 100,000 limit would apply to capital improvements. Zero-emission vehicles would get a faster regime, and tenants could depreciate improvements they pay for without the landlord's consent. Self-employed people who do not keep accounts would keep the cash basis.
Status: this is a bill in the Chamber of Deputies, not law. A comprehensive amendment is expected at second reading, and the transitional rules are still in the comment procedure. Assets bought before the change would stay under the CZK 80,000 rule. No start date has been fixed.
23% income tax rate applies only above CZK 1,859,868 in 2027
The average wage for 2027 tax and insurance purposes is CZK 51,663, set by a government regulation already published in the Collection of Laws. The higher 23% personal income tax rate applies to the part of the tax base above 36 times this amount, which is CZK 1,859,868 a year in 2027, compared with CZK 1,762,812 in 2026.
For the self-employed, the maximum annual assessment base for social insurance rises to CZK 2,479,824. Profitable sole traders should take both figures into account when estimating their 2027 tax and advances.
EET 2.0: refunds and corrections are recorded as negative sales
Electronic sales registration returns on 1 January 2027 under the law signed by the President on 17 September 2026. When you refund a customer, settle a complaint or correct a mistake, you record the amount as a negative sale. You do not need to link it to the original receipt.
Misusing this, for example by recording a refund that never happened, can be fined up to CZK 500,000. The tax administration is hiring 280 staff for EET 2.0 and its anti-fraud unit, and its free MOJE eet app is due from 1 December 2026.
Up to 10 years in prison proposed for illegal hiring of foreign workers
ANO MPs, including the interior, labour and finance ministers, have added amendments to the bill on Ukrainians with temporary protection. They would allow prison sentences of up to 10 years for employers and intermediaries who illegally employ foreigners or run disguised agency work outside the licensed agency system. Lawful employment and licensed agency work are not targeted.
The same bill would bar temporary-protection holders with tax arrears from the special long-term residence route. The Chamber sent the bill to its third reading on 22 October 2026. It still needs the final vote, the Senate and the President's signature, so none of this applies yet.
EU court: gifting a business in two halves is not a VAT-free transfer
The EU General Court ruled that donating a business to two people, each receiving a half share, is not a transfer of a whole business for VAT purposes, because neither half can carry on the activity alone. A plan to put both halves into a partnership afterwards did not change this. Owners planning to hand a business to family members should check the VAT treatment before the transfer.
Deadlines
No tax deadlines 3–5 November 2026; next: 9 November (excise duty payments for September) and 20 November (payroll tax advances for October).
Sources
- Daňovky.cz – Income tax amendment: changes for businesses and landlords
- Daňovky.cz – Transitional rules for the income tax amendment
- Feedit.cz – Who will pay 23% income tax in 2027
- EY – Average wage for 2027
- Podnikatel.cz – EET 2.0 refunds and corrections
- Podnikatel.cz – EET 2.0 staffing
- EET.gov.cz – President signs EET 2.0 law
- Expats.cz – Illegal hiring of foreign workers could bring 10-year sentences
- Daňovky.cz – EU General Court on gifting a business and VAT
This summary is for general information only and does not replace individual tax advice. Rules and amounts can change; check the date of this post.
