Report on Income Tax: First Applicable in 2026
During 2026, certain entities may become subject to the obligation to prepare and publish a report on income tax, also known as Public Country-by-Country Reporting. As the name suggests, this is a public document published in the collection of deeds of the Commercial Register. Should not be confused with the “classic” CbCR, which is intended solely for the tax authorities.
The obligation mainly applies to large multinational groups and standalone undertakings with a cross-border dimension. The key criterion is generally the achievement of consolidated revenue equivalent to EUR 750 million or net turnover of CZK 19 billion, in two consecutive accounting periods. The report includes selected information on revenue, profit, income tax paid and accrued, and other indicators broken down by country or tax jurisdiction.
Czech companies and branches should therefore verify whether the obligation applies to them, who within the group will be responsible for preparing and publishing the report, and whether an equivalent report prepared by a foreign parent company can be used. In terms of timing, the obligation first applies to accounting periods beginning on or after 22 June 2024; for companies with a calendar-year accounting period, this will typically mean the year 2025, with publication required no later than 31 December 2026.
Failure to prepare, publish or make available the report on income tax may be subject to a fine of up to 3% of total assets. We therefore recommend carrying out a brief screening of the relevant thresholds and group structure. Timely preparation may reduce the risk of duplicate reporting, late publication or incomplete compliance with the statutory obligation.
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