How will consolidation affect income tax?
Act No. 261/2025 Coll. was published in the Collection of Laws, amending and supplementing certain Acts in connection with the consolidation of public finances.
Article VIII also amends selected provisions of Act No. 595/2003 Coll. on Income Tax.
An overview of the most important changes
Minimum Corporate Tax
A new minimum tax in the amount of EUR 11,520 has been introduced for legal entities with taxable income above EUR 5,000,000. The minimum tax of EUR 3,840 will continue to be paid by taxpayers with taxable income of more than EUR 500,000 and less than EUR 5, 000,000.
Deduction of Investment Expenditure (Costs)
In order to promote the application of the deduction, the investment period is extended from six to nine years (2022-2030).
New Tax Rates for Natural Persons
New tax rates are introduced for employment and business income at 30% and 35% on the part of the tax base that exceeds 212.4 times or 264 times the amount of the applicable minimum subsistence level (for 2026 this corresponds to EUR 60,349.21 and EUR 75,010.32 respectively). At the same time, the maximum threshold for the application of the 19% tax rate is reduced to 154.8 times the amount of the applicable minimum subsistence level (EUR 43,983.32 for the year of 2026).
The multiples of the applicable minimum subsistence level for calculating the non-taxable parts of the tax base per taxpayer and per spouse are also changed.
Special Tax Base on Fees for Making a Payment Transaction in Favour of a Player Account
A special tax base is introduced, which includes income (revenue) from fees for card payments to a so-called player account. The taxpayer will be a bank or a branch of a foreign bank. This tax base will be taxed at a rate of 54% and the taxed income will no longer be included in the regular tax base.
The above provisions will take effect as of 1 January 2026.
