Senate approves single monthly employer report, but returns accompanying bill to Chamber of Deputies

On 23 July 2025, the Senate approved the Single Monthly Employer Report Bill, which represents a significant step towards administrative simplification for businesses. Employers will now report employee data to the state on one form instead of several different reports that they currently submit to the tax administration, health insurance companies and the Czech Social Security Administration.

While the Single Monthly Employer Report bill received unqualified support in the Senate, the so-called accompanying bill – containing not only technical amendments related to the bill but also other changes, particularly in the area of tax laws – is returning to the Chamber of Deputies with amendments. Senators proposed significant corrections to some points.

Key changes proposed by the Senate

Non-monetary health and leisure benefits are to remain exempt, but the Senate wants to remove the controversial condition that they must not be “otherwise related to the performance of work”, which has caused legal uncertainty – precisely because employee benefits can be related to the performance of work. Only the basic condition that it must not be a wage, salary, remuneration or compensation for loss of income should remain.

The Senate proposes abolishing the annual limit of CZK 40 million for the exemption of income from the sale of securities and shares in commercial companies. However, the limit would remain in place for income from the sale of crypto-assets. Compared to the original proposal to abolish the limit for all of these revenues, which was not initially adopted in the House, this would be a compromise solution.

The amendments also include the actual definition of a low-emission vehicle for tax purposes. According to the Senate version, this means a motor vehicle with CO₂ emissions of no more than 50 g/km that is also not emission-free. The aim is to maintain the possibility of tax benefits for the use of these vehicles beyond 2025, as the current wording of the law would limit this possibility in the future.

Conversely, the Senate agreed to repeal the erroneously introduced requirement to pass an entrance exam when working under an agreement to perform work or to complete a job, to introduce new rules for employee stock ownership plans (ESOPs), or to higher deductions to support research and development.

Other legislative developments

In the next vote, the Chamber of Deputies can adopt either its original version or the version returned by the Senate – without the possibility of voting on individual amendments separately. The final form of the law will then be considered by the President. If neither of the options is approved, or if there is no time to discuss it before the end of the parliamentary term, the law will be rejected.

We will continue to keep you informed of further developments. Given the significant potential practical implications, we recommend that employers and taxpayers monitor the situation and prepare for different legislative scenarios.