
Czech Companies Will Be Required to Ensure Equal Pay
New legislation aims to address the wage gap between men and women. The changes — and the compliance checks that follow — will apply to both large and small companies.
New legislation aims to address the wage gap between men and women. The changes — and the compliance checks that follow — will apply to both large and small companies.
The flat (lump sum) tax frees entrepreneurs from paperwork and simplifies the process of paying mandatory insurance and income tax. Still, for some, sticking with the standard regime — calculating tax based on documented income and expenses — may be more profitable.
Starting in January, the minimum wage in the Czech Republic will increase by CZK 1,600 per month, bringing the gross total to CZK 22,400. The figure, based on the latest forecast from the Ministry of Finance, was confirmed by Minister of Labor Marian Jurečka.
Many entrepreneurs in the Czech Republic end up paying more in taxes than necessary – simply because they don’t take advantage of all the deductions allowed by law. And that can cost them thousands of crowns every year.
Starting a business in the Czech Republic without VAT registration is easy and often more convenient, especially in the early stages. Many entrepreneurs choose to operate as non-VAT payers because it means less paperwork, no obligation to remit part of their earnings to the state, and in many cases, more competitive pricing for end consumers.
In 2025, the minimum wage in the Czech Republic has gone up again. The Ministry of Labour and Social Affairs (MPSV) now uses an indexation mechanism to calculate the monthly and hourly minimum wage each year. But what exactly is the minimum wage this year? And how does it compare with other EU countries like Germany, Austria, Slovakia, or Poland?
Document archiving is an essential part of any accounting process. Properly storing documents in accordance with current regulations can protect entrepreneurs from issues during audits and serve as a legal safeguard.
Start by creating a personal file for the new employee from day one. This is essentially a folder where you store all key documents related to their employment. Having everything organized in one place will save you time and trouble later on.
A recent amendment to the VAT Act introduced a new obligation: the so-called refund of the declared VAT deduction in cases where a payment has not been made. But when exactly does this obligation take effect, and for which tax period must an entrepreneur or company adjust the deduction?
Sending money abroad through your bank might seem like a straightforward task, but it can end up costing you a lot more than expected. Hidden fees, unfavorable currency conversions, or even minor data entry mistakes can lead to significant losses.
As of June, the rules for terminating employees in the Czech Republic have changed significantly. The new conditions apply to both dismissals initiated by the employer and those initiated by the employee. The changes are especially disadvantageous for employees who, for instance, violate their work obligations.
A properly issued tax document is essential for claiming the right to a VAT deduction. At the same time, it serves as a key accounting and tax record. Its required format and content are defined by VAT legislation.
Many entrepreneurs rely on external sources of financing — in other words, borrowed funds — to support their business operations. One common option is credit financing. But how exactly are loans recorded in accounting?
Artificial intelligence (AI) is becoming an essential tool across a wide range of industries — and accounting is no exception. As technology continues to evolve, it’s reshaping the way we work, helping us process large volumes of data with greater speed, accuracy, and efficiency.