Document 40 - Amendment to the Income Taxes Act

Processed date: 25.11.2025 |Session 10

Summary

The amendment changes the rules for the tax deductibility of advertising and promotional gifts in the Income Tax Act and aligns them with the rules for value added tax. It allows wine and now also beer to be included among tax deductible gifts again, provided that their value does not exceed CZK 500 excluding VAT. This removes the selective ban introduced in 2023, which disadvantaged Moravian and Czech winemakers and some other producers. The change does not change the obligations of taxpayers and has no impact on public budgets, but it does increase the options for entrepreneurs when choosing promotional gifts.

The effective date is 1 January 2027.

Topics

Additional documents

Additional document 1

Parliamentary Document 40/1 – Government Opinion on Document 40/0

Processed date: 24.12.2025

The government has taken a neutral stance on the proposed amendment to the Income Tax Act, but warns of serious risks. According to the government, the proposal overly expands the tax deductibility of advertising gifts, removes the need for labelling and the exclusion of products subject to excise tax, which could lead to a loss of tens of millions of crowns in public revenue. It also criticises the possibility of unlimited tax recognition of commercial samples and the inappropriate terminology and legislative and technical errors in the proposal.