In the just-ended parliamentary term, the Czech Chamber of Deputies did not approve the bill on a digital service tax. Hence the bill would have to go through the entire legislative process again should the new government want to introduce a digital tax. However, this does not seem likely given the agreement reached on new international taxation rules at the G20 level, since it also includes a commitment by participants not to apply or introduce new digital taxes.

As of 1 January 2022, the (employer-paid) substitute wage during sick leave and the (social-security) sick leave benefit will both be higher, thanks to the stipulated increase of the reduction limits.

The second reading of Czech GDP for 3Q has brought a slight upward revision. The figure was increased to 1.5% qoq from the previous estimate of 1.4%. The qoq rate of growth was thus similar to 2Q’s 1.3% qoq. Given the problems faced by industry, we consider this a very good result. Due to a higher base effect, yoy GDP growth slowed from 8.5% to 3.1%, as 3Q20 was already marked by a partial economic recovery. Economic activity is still about 2.5% below the pre-crisis 2019 level.

The government approved the extension of Scheme A of the Antivirus programme and the reintroduction of Scheme B retroactively from 1 November 2021.