The government is preparing to introduce the possibility of keeping accounting and tax records in euros starting from January 2024. This was stated last week in the Otázky program Václava Moravec of Czech television by the finance minister Zbyněk Stanjura (ODS). Companies could pay taxes in euros.
Although critics of the euro have firmly opposed this proposal, Finance Minister Zbyněk Stanjura believes that it is an excellent tool to meet exporting companies, but not only. Indeed, for companies exporting goods and services to euro area countries, this would be an effective step forward in the entire accounting process, XTB analyst Štěpán Hájek said . According to him, the possibilities of foreign exchange accounting could be used by many other companies to reduce costs. Among other things, by introducing the possibility of fiscal registrations in euros, the Czech economy would take a symbolic step towards a potentially smoother process of adopting the euro, he added.
This proposal is also very interesting for accounting management software vendors: ” It looks like a small technology, but I think it could be a great project for accounting software companies ,” said Radim Dohnal , analyst at Capitalinked.com. He believes that for many multinationals this could be a reason to bring their regional headquarters to the Czech Republic.
However, this proposal is not without its critical points: “In my opinion, however, it does not solve the main problem that some exporters are complaining about today, namely the costs deriving from fluctuations in exchange rates. These arise for companies if they collect revenues in one currency and pay the costs in another currency ” , said analyst Cyrrus Tomas Pfeiler
Even if a precise date has not yet been defined, the direction of the Czech Republic is now clear: there is the will to fully enter the euro area, despite the need to pay attention to the trade-off between greater Europeanization and loss the independence of the NCB, not to mention the incomplete convergence between the korona and the euro, in terms of prices and wages.
Source: www.ceskenoviny.cz
Sources of images: Pixabay.com; Storyset.com
