Czech government approves draft law on global minimum tax

Czech government has approved a draft tax law that would implement a global minimum tax at the rate of 15 percent.

The draft law seeks to transpose the EU Directive on global minimum tax into Czech domestic tax law.

The draft law provides for both a top-up tax allocated under the EU regulation and a comparable domestic top-up tax.

Welcoming the development, Finance Minister Zbyněk Stanjura, said: “Large multinational groups will pay a minimum tax of 15 percent in the Czech Republic, which is an important step towards ensuring fair and balanced taxation in our country. In this way, we will join the states that refuse to allow the diversion of corporate profits to so-called tax havens.”

“In addition, this will provide an additional source of public budget and create more equal conditions for all market participants,” he added.

The proposal, if signed into law, would apply from December 31, 2023.