Amendment to the Accounting Act: increase in turnover and asset limits approved

As part of the parliamentary press issue 783, the amendment to Act No. 563/1991 Coll., on accounting, was discussed and subsequently approved in the Chamber of Deputies on Friday, June 27, 2025.

The approved amendment mainly changes the area of limits in the form of net turnover and net assets (their significant increase) for individual categories of accounting entities and also brings a related change in the obligation of the auditor to verify financial statements.

The new limits for classifying an entity into a related category are as follows
(note - the number of employees remains unchanged from the current adjustment):

Micro accounting entity (does not exceed at least 2 of the specified thresholds)

• Total assets 11.000.000 CZK
• Annual total net turnover 22.000.000 CZK
• Average number of employees 10

Small accounting entity (does not exceed at least 2 of the specified thresholds)

• Total assets 120.000.000 CZK
• Annual total net turnover 240.000.000 CZK
• Average number of employees 50

Medium accounting unit (does not exceed at least 2 of the specified thresholds)

• Total assets 600.000.000 CZK
• Annual total net turnover 1.200.000.000 CZK
• Average number of employees 250

Large accounting entity

The accounting entity that exceeds at least the 2 criteria set for a medium accounting entity.

The increase in the limits for the categorization of accounting entities also directly reflected in the obligation to audit of financial statements, as only medium and large accounting entities will now be required to have their financial statements verified by an auditor under the Accounting Act.

We will inform you about further procedural developments.