On 22 November 11, the President signed a bill amending some laws in connection with the consolidation of public budgets, the so-called consolidation package[1]. From 1. 1. 2024 there are a lot of changes ahead of us and in this article we will focus on those related to taxes.
Value added tax
Section 47 paragraph 1 will be significantly changed of the Value Added Tax Act. From 2024, it will replace the current three VAT rates only two, namely 12% and 21%. For example, food, plants, animals or newspapers will fall under the lower tax rate. The complete list of goods subject to this reduced rate is set out in Annex No. 3 of the aforementioned law.
Increase in corporate income tax
Years Income Tax Act will not remain unchanged. It is worth noting the amendment to § 21, paragraph 1, in which the corporate income tax rate will be new 21% instead of the current 19%.
Changes relating to natural persons
Another news is that natural persons, which already exceed 36 times instead of the original 48 times the average salary per year, they will be subject higher, That is 23% tax rate. The change occurred in iu discounts for the wife/husband, which can only be used for the spouse who takes care of a child under 3 years old. At the same time already from 2024 it will not be possible to apply the student tax discount and the discount for placing a child. In addition, employees will pay more for health insurance.
Property tax
Novela of the Real Estate Tax Act things will increase rates of this tax approx to 1,8 times. For example, for a residential building, the basic tax rate according to § 11 paragraph 1 letter a) will increase from CZK 2 per 1 m² to CZK 3,50. The tax revenue obtained in this way will go to the municipalities, which, however, will receive less funding from shared taxes, which should have a positive effect on the state budget.
záver
In conclusion, we add that the tax increase will not leave out tobacco products, gambling, and the price of the highway stamp will also increase. The consolidation package contains a large number of other tax changes, in today's article we tried to summarize the most fundamental ones from our point of view.
Source: leagle.one
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Mgr. Lucie Špičková, Attorney
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[1] All changes to the laws are listed here: https://www.psp.cz/sqw/text/tiskt.sqw?o=9&ct=488&ct1=0&v=SZ
