Tax reform postponed until 2021

Prime Minister Andrej Babis has confirmed that a government planned tax reform will have to be postponed until 2021 since the national budget could not afford the subsequent fall-out in revenues it would bring about. The opposition parties have criticized the delay.

The proposed tax reform envisages the abolition of the so-called “supergross” tax wage. Instead, the draft amendment introduces a progressive tax rate of 19% for income of up to 1.5 million crowns and 24% for income above this amount. Entrepreneurs, including those claiming expenses as a percentage of income, will be allowed to deduct 75% of social security and health insurance contributions paid.