By: Anna Beránková
June 30, 2025 3 min read
The government's bill to reduce the administrative burden by unifying 25 forms into a single one was approved by the Chamber of Deputies on Friday, June 27, 2025. 140 of the 142 deputies present voted in favor. The bill will now go to the Senate. The digitalization system is to be tested in pilot operation starting next month. In addition to reducing the administrative burden and costs for companies, a positive impact on the work of employees is also expected from next year.
The bill also includes the planned abolition of withholding tax on income from dependent activities in the coming years and the associated obligation of employees to file tax returns, as well as other changes regarding employers' payroll. The Chamber also approved important amendments that regulate other obligations of employers. They will now have to register in the registry no later than two days before the first employee starts work, and if no one starts work, they must notify within eight days. From July 1, 2026, it will be necessary to register employees no later than the day they start work, otherwise there is a risk of a fine of up to 20 000 CZK. Although the law is set to come into effect on 1 January 2026, for the months of January to March 2026,
the employer is obliged to submit a single monthly report by 1 April 2026, for each calendar month separately. Furthermore, the Chamber of Deputies has extended access to the data from the report to the Ministry of Justice and Education in order to reduce duplication in data reporting.
The abolition of the limit of 40 million CZK for the exemption of income from the sale of securities, shares in business corporations and crypto-assets from personal income tax, which was proposed as part of the amendments to this amendment, was not approved. The limit therefore remains in force and income above this limit remains taxable for taxpayers.
An important amendment to the Act on the Organization and Implementation of Social Security enters into force on July 1, 2026, fundamentally altering the employee registration process with the Czech Social Security Administration (CSSA / ČSSZ).
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