Tax news of 2023

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Income tax

The possibility of extraordinary depreciation continues in 2023

The application of extraordinary depreciation can be used by entrepreneurs who purchased selected tangible assets in the period from January 1, 2020 to December 31, 2023.

An increase in the amounts of annual income for which a tax return does not have to be filed

From January 2023, everyone whose annual taxable income exceeds CZK 50,000 will file a tax return. Until now, this limit was set at CZK 15,000. Taxpayers who have additional income from employment will file a tax return after reaching CZK 20,000, instead of the current CZK 6,000.

Division of flat tax into three bands

While it was previously possible to register for the flat-rate tax regime with annual income from self-employment up to CZK 1,000,000, for 2023 the limit has been raised to  CZK 2,000,000 . The increase of this limit is also related to the division of the flat tax  into three bands  associated with different amounts of monthly payments.

Which category an entrepreneur falls into depends on the amount of his annual income and also on the type of activity.

Obligation to submit tax returns electronically

In connection with the introduction of data boxes, entrepreneurs are obliged to file tax and other filings electronically from 2023.

Taxation of windfall gains

A fundamental change is the introduction of a tax on windfall profits, which falls on the banking and energy sectors.

Value added tax

Increasing the limit for mandatory VAT registration to CZK 2 million

The most fundamental change is the increase in the limit for mandatory VAT payer registration, from CZK 1 million to CZK 2 million.

Lower fines for entrepreneurs for inspection reports

The tax changes for 2023 also apply to the control report. Fines  for inspection reports have been reduced by half , both for the self-employed and for limited liability companies with one partner. Also, one fine of CZK 10,000 is automatically waived. As in 2022, the financial administration will also be able to waive fixed fines of CZK 10,000, CZK 30,000 or CZK 50,000 upon request in 2023.