On 10 September 2025, the Chamber of Deputies approved the accompanying bill to the Single Monthly Employer Reporting Act (JMHZ), incorporating the amendments proposed by the Senate. This significant legislative step affects not only employers’ administrative obligations but also introduces major changes to the Income Tax Act.
The most relevant measures include:
- amendments to provisions related to research and development allowances;
- abolition of the annual CZK 40 million limit for the exemption of income from the sale of securities and company shares, while keeping this limit applicable to income from crypto assets;
- introduction of a new system of taxation of income from qualified employee stock options, granted by qualified employers to qualified employees;
- abolition of withholding tax for agreements on occasional or part-time work, as well as for remuneration of statutory body members who are Czech tax non-residents;
- clarification of the definition of leisure-related employee benefits;
- addition of the definition of a low-emission vehicle within the scope of the Income Tax Act.
The bill will now be submitted to the President for signature. Once signed, it will be published in the Collection of Laws and will enter into force according to its transitional provisions.
For businesses, these changes represent an opportunity to review tax strategies, employee benefit structures, and incentive schemes. Targeted consultancy is therefore essential to ensure regulatory compliance and to take full advantage of the new opportunities introduced by the reform.
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