What the Government Consolidation Package Brings
The government consolidation package aims to save the state over 97 billion Czech crowns in the next year. A new article in the magazine "Ekonom" by Ondřej Trubač and Tomáš Munzar highlights the important aspects of these changes.
The planned changes include, in particular, raising the corporate income tax rate from 19% to 21% starting from January 1, 2024, limiting exemptions from personal income tax on the sale of shares in business companies, introducing a cap on the tax deductibility of vehicle acquisition expenses, and lowering the threshold for applying the higher income tax rate of 23 percent from 48 times to 36 times the average monthly wage for individuals. Value Added Tax (VAT) will also be affected - the current two reduced rates will be merged into one with a rate of 12 percent.
Considering that the new package imposes increased demands on tax entities and affects practically every area of taxes and tax obligations, it is essential to pay attention to these extensive changes.For more information and details, you can read the entire article at the following address.