This section is dedicated to up-to-date information on new tax and accounting laws. Our goal is to provide you with important and clear information that will help you keep up with the ever-changing legislative environment.

Accounting in the Czech Republic from 2026

What changes and what stays the same

An amendment to the Accounting Act (Act No. 316/2025 Coll.) will enter into force on January 1, 2026. It is not a revolution, but a modernization of the rules and adjustment of limits.

🔹 Main changes

1️⃣ New limits on company size

The limits for classification into the micro/small/medium/large accounting entity categories are increasing.
This allows more companies to remain in a lower category (and have fewer obligations).

A company moves to a higher category if it exceeds at least 2 limits for 2 consecutive years.

Category Assets Turnover Employees

Micro up to 11 million CZK up to 22 million CZK by 10

Small up to 120 million CZK up to 240 million CZK up to 50

Medium up to 600 million CZK up to 1.2 billion CZK up to 250

Large exceeds 2 limits of medium category

2️⃣ Audit

From 2026, auditing will only be mandatory for medium and large accounting entities.

3️⃣ Tax depreciation – a fundamental change

• The depreciation limit increases from CZK 80,000 to CZK 100,000

• Depreciation groups are being deleted.

• Only straight-line monthly depreciation is introduced

New depreciation periods:

• 5 years (60 months) – most assets

• 15 years (180 months) – goodwill

• 30 years (360 months) – selected real estate and other assets

Depreciation will now be calculated monthly, not annually.

4️⃣ New term "tax value"

A uniform concept of "tax value" is being introduced, which unifies the current terminology in the Income Tax Act.

5️⃣ Property valuation

There will be more market value and administration will be simplified through greater use of accounting data.

✅ What doesn't change

• The chart of accounts remains the same.

• No need to recode accounts

• No need to change accounting software

For whom are the changes most important?

Micro and small businesses
✔ easier mode
✔ often without a mandatory audit

Medium and large companies
✔ mandatory audit
✔ greater emphasis on transparency
✔ possibility of using international standards