Changes in Czech corporate law in 2026

Digitalization of Labor Law Agenda and New Reporting

One of the most significant changes, which will fully manifest in practice in 2025 and 2026, is the digitalization of labor law and the tightening of records for so-called contract workers (DPP - Agreement on Work Performance). The state is gradually abandoning paper forms and transitioning to systems where employers report data electronically in real-time or monthly intervals. The Czech Social Security Administration (ČSSZ) is becoming a key data hub.

A significant change is the obligation for employers to report all employees working under an Agreement on Work Performance (DPP) to the ČSSZ register, including those who were previously exempt from insurance contributions. This step aims to aggregate earnings from multiple agreements with different employers and prevent the circumvention of insurance obligations. For companies, this means the need to update payroll systems and set up processes to ensure timely reporting.

This change has significant implications for companies of all sizes, including foreign entities employing local staff in the Czech Republic. A key feature of the new regulation is the employer's responsibility for the accuracy of data in the registers. It is no longer sufficient to merely pay remuneration; what matters is whether the notification obligation to the state has been met. Control authorities focus precisely on these aspects, and digitalization enables automated control.

Practical Impacts and Sanction Regime

Breaches of obligations related to employee registration and reporting are no longer limited to administrative reprimand procedures. Labor inspection authorities can impose significant sanctions.

In case of non-compliance with registration obligations or failure to maintain proper work time records, fines can be imposed, which, depending on the severity and size of the employer, can amount to hundreds of thousands, and in extreme cases, millions of CZK.

A significant novelty in the area of remuneration is also the transposition of the European directive on pay transparency. Employees gain stronger tools to ascertain information about average wages in comparable positions. Confidentiality clauses prohibiting employees from sharing information about their own wages become unenforceable.

Flexible Labor Code Amendment: Proposals for 2026

Labor law in the Czech Republic is undergoing discussions about a so-called flexible amendment, which aims to stimulate the labor market. If the legislative process proceeds as expected, 2026 could bring changes in the area of probationary and notice periods, which is crucial for international investors accustomed to more flexible markets.

Discussions include extending the maximum length of the probationary period and also the possibility of its additional extension by written agreement. For employers, this would mean more room to verify the competencies of key experts, especially when recruiting from abroad.

A fundamental proposed change is the adjustment of the notice period's commencement. Proposals aim for the notice period to start running on the day the notice is delivered, not the first day of the following month. This change would significantly speed up the process of terminating employment relationships and reduce company costs. However, it is necessary to monitor the final wording of the law, as this area is subject to strong political negotiations.

A specific area is support for retirement savings. Employers must prepare for obligations related to contributions to pension products for employees in demanding professions, which requires precise job categorization and cooperation with healthcare providers.

Workplace Accidents and BOZP Digitalization

In the area of occupational health and safety (BOZP), the trend of digitalization continues. Reports and records of accidents are gradually being moved to digital portals of the State Labor Inspection Office. For companies with international management, it is crucial to ensure that local management has access to these data mailboxes and portals.

Neglecting electronic notification of an accident can lead to problems with reduced insurance benefits from the employer's statutory liability insurance.

Tax and Accounting Changes: Consolidation Package and New Limits

The tax and accounting area in the Czech Republic is absorbing the impacts of the consolidation package, whose effects are spread over the years 2024–2026. The changes affect both corporate and individual taxation and require a review of tax strategies, especially for holding structures.

Tax Deductions for Research and Development

The area of research and development (R&D) deductions remains attractive for companies but is also under scrutiny by the tax administrator. Legislation allows for the deduction of R&D costs from the tax base, with the key being the demonstration of novelty and technical uncertainty.

Companies should pay increased attention to the formal correctness of project documentation, which must exist before the project begins. In 2026, the possibility of carrying forward unused deductions to subsequent periods will remain crucial, allowing for the optimization of tax liabilities depending on profitability.

Social Insurance and Increased Contributions for Self-Employed Individuals

A significant adjustment affecting self-employed individuals is the gradual increase of the minimum assessment base for social insurance. In 2026, this base will further increase in line with the public finance consolidation plan.

This means higher fixed costs for self-employed individuals. For foreign companies collaborating with Czech contractors, this may lead to pressure for increased rates from suppliers.

Taxation of Company and Share Sales

The rules for the exemption of income from the sale of company shares have been amended as part of the consolidation package. The introduction of a limit for the exemption of income from the sale of securities and shares of CZK 40 million per taxpayer has necessitated a rethinking of exit strategies.

For 2026, investors and company owners must expect that sales exceeding the set limits may be subject to taxation, unless specific conditions are met or other structures are used. It is recommended to consult a tax advisor for specific situations, especially for transactions with an international element.

Abolition of Withholding Tax for Non-resident Board Members

In the area of international taxation, it is important to monitor changes in the taxation regime of income for members of statutory bodies who are tax non-residents. The trend is towards unifying the regime with residents, which may mean a shift from final withholding tax to the obligation to file a tax return in the Czech Republic.

Audit and Accounting: Increased Limits

The amendment to the Accounting Act transposes European directives and brings an increase in the limits for mandatory audit of financial statements. The values of turnover and assets, upon exceeding which the audit obligation arises, are increasing, reflecting inflation.

Some smaller and medium-sized companies will thus be exempt from the obligation to have audited financial statements, which will reduce their administrative costs. Conversely, for large groups and holdings, the audit remains a key tool for transparency towards banks and investors.

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Artificial Intelligence Regulation (AI Act): Obligations for 2026

The AI Act is a directly applicable regulation that will fully impact companies in 2026. While some prohibitions are already in force, the transitional period for most obligations concerning so-called high-risk AI systems ends in August 2026.

What does this mean for business?

If your company develops, deploys, or uses artificial intelligence systems in areas such as employee recruitment, creditworthiness assessment, critical infrastructure, or education, you likely fall into the high-risk category. From mid-2026, you must have a risk management system in place, ensured high data quality, technical documentation, and human oversight.

Special attention must be paid by companies using generative AI, where transparency obligations apply, and it must be clear that the content was created by a machine.

Cross-border Dimension and Fines

The AI Act has extraterritorial effect. If a Czech company uses an AI tool from a supplier from the USA or Asia, it must ensure that this tool complies with European standards.

Responsibility often falls on the deploying entity in the EU. Penalties for non-compliance are drastic – they can reach up to EUR 35 million or 7% of global turnover, exceeding GDPR penalties. Supervision in the Czech Republic will likely be divided among sectoral regulators. Anywhere.legal recommends not underestimating preparation and conducting an audit of used AI tools in time.

Cybersecurity (NIS2): Responsibility in the Supply Chain

The new Cybersecurity Act, implementing the NIS2 directive, fundamentally expands the scope of regulated entities. In 2026, the system will be fully functional. The regulation now applies not only to energy or banking but also to the food industry, chemical industry, waste management, and digital services.

Principle of Self-identification

A key change is the principle of self-identification. A company must not wait for an official request but must assess for itself whether it meets the criteria of a regulated entity, and if so, register.

For smaller companies, supply chain security is crucial. Large regulated players will contractually pressure their suppliers to meet strict security standards. Cybersecurity thus becomes a necessary condition for maintaining business relationships in the B2B sector.

Commercial Law and Cross-border Transformations

For holding structures and international groups, the implementation of the cross-border transformations directive, which is fully manifesting in practice, is important. The Act on the Transformations of Business Corporations has simplified the processes of cross-border mergers, divisions, and transfers of registered offices.

Flexibility and Mobility

It is now easier to carry out cross-border divisions by spin-off, which is an effective tool for asset restructuring. At the same time, communication between the business registers of EU member states has been digitized. Certificates for cross-border transformation can be obtained and submitted electronically, which speeds up the entire process.

However, care must be taken to protect creditors and employees, whose protection has been strengthened. Shareholders disagreeing with the transformation have guaranteed rights to acquire shares. These transactions require precise coordination of lawyers and tax advisors in both affected countries, which is an ideal task for a platform like Anywhere.legal.

Family Law and International Element: Modernization

In the area of family law, changes to the Civil Code are being prepared, which could be effective in 2026. The aim is to simplify divorce proceedings and adjust childcare rules with an emphasis on parental agreement.

For international families, where partners come from different countries or the family lives abroad, these changes are fundamental. The ability to resolve divorce and care in a single proceeding and the emphasis on out-of-court agreement speeds up the process and reduces costs. In cross-border cases, however, it is always necessary to address conflicts of laws and determine which court has jurisdiction, which requires expert legal assessment.

Sustainability and ESG: CBAM and Packaging

2026 is crucial for the Carbon Border Adjustment Mechanism (CBAM). From January 1, 2026, the transitional period ends, and importers of selected commodities from non-EU countries will not only have to report emissions but also purchase CBAM certificates. This will directly affect the cash flow and pricing of companies involved in international trade.

At the same time, packaging rules are tightening. E-shops and logistics companies will have to reduce empty space in packages and use recyclable materials. These changes require adjustments in logistics processes and may lead to a redesign of packaging solutions.

Digital Identity (eIDAS 2.0)

The Czech Republic continues to implement the European Digital Identity Wallet (EUDIW). By the end of 2026, member states should ensure the availability of this wallet for citizens.

Companies in sectors such as banking, telecommunications, and transport must prepare for the obligation to accept this identity. This will simplify client verification in the online environment across the entire EU.

Conclusion: The Strategic Role of Coordination and Expertise

2026 brings Czech companies a mix of obligations and opportunities. The common denominator of the changes is digitalization, transparency, and cross-border connectivity. Whether it is DPP reporting, compliance with the AI Act, or the purchase of CBAM certificates, companies can no longer operate in isolation.

Addressing these challenges requires more than just administrative power; it requires expert insight and the ability to integrate law, taxes, and technology.

In situations where a Czech company expands, or conversely, a foreign investor deals with compliance in the Czech Republic, coordination is key. The Anywhere.legal platform allows companies to structure requests, centralize documents, and securely use AI for initial analyses, while final solutions are guaranteed by verified experts.

FAQ: Frequently Asked Questions on Legislative Changes in 2026

1. What are the new obligations for employing under a DPP?
   Employers must electronically report all Agreements on Work Performance (DPP) to the Czech Social Security Administration, including uninsured ones. The aim is to record overlapping agreements. If limits are exceeded, the obligation to pay insurance contributions arises.

2. Who is affected by the AI Act obligation in 2026?
   Full obligations for high-risk systems (e.g., AI in HR, banking, education) come into effect in August 2026. This applies to developers and companies that deploy (use) these systems. They must ensure risk management, data quality, and human oversight.

3. Are the limits for mandatory company audits changing?
   Yes, due to harmonization with the EU, the turnover and asset limits for the audit obligation are increasing (by approximately 25%). Fewer small and medium-sized companies will thus have to have audited financial statements.

4. How does the taxation of company sales work in 2026?
   Since 2025, a limit of CZK 40 million applies to the exemption of income from the sale of shares and securities (if the time test is met). Income above this limit may be subject to taxation unless special valuations or transitional provisions are used. We recommend individual tax consultation.

5. What is CBAM and when does it become fully effective?
   CBAM is a carbon border adjustment mechanism in the EU. From January 1, 2026, the transitional period ends, and importers of selected commodities (steel, cement, aluminum, etc.) must start paying for certificates corresponding to emissions released during the production of imported goods.

6. Do I need to register under the Cybersecurity Act (NIS2)?
   The law introduces the principle of self-identification. A company must verify for itself whether it falls into a regulated sector and meets the size criteria. If so, it must actively register with the NÚKIB and implement security measures.

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