By 2025, Czech entrepreneurs will see significant regulatory relief: what to expect?

The Czech Ministry of Industry and Trade (MPO) published a package of 23 proposals to reduce the bureaucratic burden on entrepreneurs in trade, employment, environment, and tax administration and sent it for interdepartmental discussion. Minister Josef Sikela wants all proposed measures to come into force no later than July 1, 2025.

Individual proposals include tasks related to several government departments. The MPO will coordinate the phased implementation and work on the items for which he is responsible. For example, he will be responsible for preparing the Database of Information Obligations (Databáze informačních povinností) and further improving the Trade Business Portal (Portál živnostenského podnikání).

“We will eliminate the requirement to indicate the delivery address when obtaining a business license, and we will also update the content of certain types of licenses to make it as clear as possible.” Minister Sikela states that the database of information obligations will consolidate the list of obligations for entrepreneurs in a single location.

It will be possible to receive salaries in euros

One of the main proposals is to introduce the possibility for an employer to pay his employee’s salary in euros rather than Czech crowns, even if the employee works in the Czech Republic. The purpose of this innovation is to consider the interests of an employee who has obligations abroad, such as sending a portion of his salary to his family, among other things. This area is the responsibility of the Ministry of Labor and Social Affairs, which is preparing appropriate changes to the Labor Code.

Digital receipts and simplified tax return form

Other important proposal is to free entrepreneurs from the need to print checks and invoices and legislate only electronic checks. The issuance of paper checks will be mandatory upon request only. The customer can receive a digital receipt, for example through an app or by email. This will avoid the unnecessary production of paper receipts, which still end up in the trash immediately after purchase.

Simplification of the procedure for purchasing, selling, and registering vehicles

Other proposed items in the current package include changes to tax return forms, simplification of vehicle sales and registration procedures, and the provision of environmental impact assessment documents only in electronic form and not in paper form.

For example, when transferring vehicles, it is planned to eliminate the requirement to carry out an additional registration check, which will eliminate the need for people to submit a separate application for a “registration certificate”.

Discounts on fines and penalties

One of the proposals involves the automatic reduction of 50% of the received fine or penalty if the company pays it within a shortened period from the moment of issuance. However, the exact parameters of such a measure have yet to be agreed upon.

A written vacation schedule can be canceled

Additional changes include the abolition of the obligation to draw up a written vacation schedule and coordinate it with trade unions. This will allow employers to respond more quickly and flexibly to employee requests, as well as give employees more freedom to plan their vacations.

A simplified form of income declaration for individuals

Another innovation will be a new form of taxpayer declaration on personal income for the tax period (part of the tax period). The taxpayer declaration form on personal income is going to be made more convenient for filling out electronically.

It remains to be seen how quickly the proposals will make it through the approval process, but the intent from the Ministry of Industry and Trade is clear. Our accountants and lawyers in Prague monitor all changes in legislation and promptly inform clients about the changes. Contact us for advice.

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