ANTI-BUREAUCRATIC PACKAGE – RELIEF FROM THE LEGISLATIVE BURDEN FOR CZECH ENTREPRENEURS

The Czech government’s recent anti-bureaucracy initiatives, spearheaded by Minister for Legislation Michal Šalomoun. With three anti-bureaucracy packages already approved and a fourth in the pipeline, totalling 72 measures with the aim of reaching 100 by the end of the current government term, these reforms are set to streamline administrative processes and reduce regulatory burdens on companies.

These measures have been carefully designed to address the pain points businesses face. The first package was approved on August 31, 2022, followed by the second on June 14, 2023, and the third on May 7, 2024. This concerted effort marks a departure from past promises and focuses on practical, actionable changes.

For businesses, these reforms bring several key benefits. The increase in the VAT threshold to 2 million CZK and the expansion of eligibility for flat-rate taxation to the same amount are designed to ease financial and administrative pressures on smaller companies. Additionally, fines for missed deadlines on control reports have been halved, offering a significant reduction in potential penalties for smaller taxpayers.

One notable change is the introduction of the option to conduct accounting in foreign currencies. This is expected to simplify transactions for companies engaged in international trade, reducing the complexity and cost of currency conversions. Moreover, the reduction of bureaucratic paperwork includes the elimination of mandatory periodic medical exams for employees in low-risk professions and the removal of medical examination requirements for operating company vehicles. The reforms also address paperwork in other areas. Wage payments are now prioritized to bank accounts, cutting down on the administrative burden associated with handling cash payments. Electronic submissions for certain employment documents and tax proofs will further streamline processes, speeding up transactions and reducing the reliance on paper-based systems.

Businesses will also benefit from the removal of certain regulatory requirements, such as the need for health certificates and the requirement for companies to report the employment of individuals with disabilities in writing, as this information can now be derived from regular reports. These measures represent a shift towards more efficient and business-friendly regulations. By reducing paperwork and simplifying processes, the government’s reforms aim to save businesses time and resources, allowing them to focus more on their core growth. The Czech business sector believes this initiative could serve as an inspiration for other member countries.

Source: vláda.cz