Czech Republic

From 2023, a windfall tax applies to large banks and energy companies, which means a 60% corporate income tax (CIT) surcharge will apply to the excess profit of the qualifying companies over their average past profits. The windfall tax should be in place for three years.

During 2023, the Czech Republic is required to implement the European Union (EU) directive ensuring a minimum level of 15% effective taxation for enterprises that are members of large multinational groups operated in the European Union (Pillar 2). The global anti-base-erosion (GLOBE) rules should apply from 2024, with the backstop rule coming into effect from 2025.

In 2023, the government has announced its plans to implement changes to the tax system, which also includes an increase of the CIT rate from 19% to 21%. The changes yet need to be approved by the Parliament.