Changes in Czech Corporate Law and Regulation in 2026: A Strategic Overview for Company Management and Legal Teams

Digitalization of Labor Law Agenda and New Reporting

A significant change is the employer's obligation to report all employees working under an agreement on work performance (DPP) to the ČSSZ register, even those for whom there was no previous obligation to pay insurance premiums. The aim of this step is to aggregate income from multiple agreements with different employers and prevent circumvention of insurance obligations. For companies, this means the need to update payroll systems and set up processes for timely reporting.

This change has fundamental implications for companies of all sizes, including foreign entities employing local workers in the Czech Republic. A key element of the new regulation is the employer's responsibility for the accuracy of data in the registers. It is no longer enough to simply pay remuneration; it is crucial whether the notification obligation to the state has been fulfilled. It is precisely these aspects that control authorities focus on, and digitalization allows them automated control.

Practical Implications and Sanction Regime

Violations of obligations related to employee registration and reporting are no longer solely dealt with through administrative offense proceedings. Regional labor inspectorates have the power to impose significant sanctions.

In case of non-fulfillment of registration obligations or failure to maintain proper working 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 even millions of CZK.

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

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Flexible Labor Code Amendment: Proposals for 2026

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

Discussions are ongoing regarding the extension of 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 specialists, especially when recruiting from abroad.

A fundamental proposed change is the adjustment of the notice period. Proposals aim for the notice period to begin on the day of delivery of the termination, rather than the first day of the following month. This change would significantly speed up the process of terminating employment 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 the support of old-age 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.

Work Accidents and OHS Digitalization

In the area of occupational health and safety (OHS), the trend of digitalization continues. Reporting and recording of accidents are gradually moving 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 boxes and portals.

Neglecting to electronically report an accident can lead to problems with reduced insurance benefits from employer's liability insurance by law.

Tax and Accounting Changes: Consolidation Package and New Restrictions

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 personal taxation and require a review of tax strategies, especially for holding structures.

Tax Reliefs for Research and Development

The area of deductions for research and development (R&D) remains attractive for companies, but at the same time under scrutiny by the tax administrator. Legislation allows for the deduction of R&D costs from the tax base, with the key being proof 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 crucial possibility of carrying forward unused deductions to subsequent periods remains, allowing for optimization of tax liability according to profitability.

Social Security and Increased Contributions for Self-Employed Persons

A significant adjustment affecting entrepreneurs – natural persons – is the gradual increase in the minimum assessment base for social security. 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 cooperating with Czech suppliers, this may mean pressure to increase supplier rates.

Taxation of Company and Share Sales

The rules for exemption of income from the sale of shares in companies 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 re-evaluation 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 the specific situation with tax advisors, especially for transactions with an international element.

Abolition of Withholding Tax for Non-Resident Members of Statutory Bodies

In the area of international taxation, it is important to monitor changes in the tax regime for income of 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: Increasing Limits

The amendment to the Accounting Act transposes European directives and brings an increase in limits for the mandatory audit of financial statements. Turnover and balance sheet values, the exceeding of which establishes the obligation to audit, are increasing, reflecting inflation.

Some small and medium-sized companies will thus no longer be obliged to have their financial statements audited, which will reduce their administrative costs. Conversely, for large groups and holdings, an audit remains a key tool for transparency towards banks and investors.

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Artificial Intelligence Act (AI Act): Obligations for 2026

The AI Act is a directly applicable regulation that will fully impact companies in 2026. While some prohibitions apply earlier, the transition period for most obligations regarding so-called high-risk artificial intelligence 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 category of high-risk systems. As of mid-2026, you must have a risk management system in place, ensure high data quality, technical documentation, and human oversight.

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

Cross-border Dimension and Sanctions

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 meets European standards.

Responsibility often falls on the entity deploying the system in the EU. Penalties for non-compliance are drastic – they can reach up to 35 million EUR 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 AI tools used in a timely manner.

Cybersecurity (NIS2): Responsibility in the Supply Chain

The new cybersecurity law, which implements the NIS2 directive, significantly expands the scope of regulated entities. In 2026, the system will be fully operational. The regulation newly applies not only to energy or banks, but also to the food industry, chemical industry, waste management, and digital services.

Self-assessment Principle

A key change is the principle of self-assessment. A company must not wait for an official request, but must itself assess 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.

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Commercial Law and Cross-border Transformations

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

Flexibility and Mobility

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

However, attention must be paid to the protection of creditors and employees, which has been strengthened. Shareholders who do not agree with the transformation have guaranteed rights to settlement of 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 amend the rules for child care with an emphasis on parental agreement.

For international families, where partners come from different countries or the family lives abroad, these changes are crucial. The possibility of resolving both divorce and care in one proceeding and the emphasis on out-of-court settlements speed up the process and reduce costs. In cross-border cases, however, it is always necessary to resolve the conflict of laws and determine which court has jurisdiction, which requires expert legal assessment.

Sustainability and ESG: CBAM and Packaging

2026 is a key year for the Carbon Border Adjustment Mechanism (CBAM). As of 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 becoming stricter. E-shops and logistics companies will have to reduce empty space in packaging and use recyclable materials. These changes require adjustments to 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, or 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 a mix of obligations and opportunities for Czech companies. The common denominator of the changes is digitalization, transparency, and cross-border connectivity. Whether it's DPP reporting, AI Act compliance, or purchasing CBAM certificates, companies can no longer operate in isolation.

Solving these challenges requires more than just administrative strength; it requires expert insight and the ability to connect law, taxes, and technology.

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

FAQ:

• What are the new obligations for employment under DPP? Employers must electronically report all agreements on work performance (DPP) to the Czech Social Security Administration, including those not subject to insurance. The goal is to record parallel agreements. If limits are exceeded, the obligation to pay insurance premiums arises.

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

• Are the limits for mandatory company audits changing? Yes, in line with harmonization with the EU, the turnover and asset limits for the obligation to audit are increasing (by approximately 25%). Smaller and medium-sized companies will thus have to have their financial statements audited less frequently.

• How does the taxation of company sales work in 2026? As of 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 a special valuation or transitional provisions are used. We recommend individual tax consultation.

• What is CBAM and when will it fully apply? CBAM is a carbon border adjustment mechanism at the EU borders. On January 1, 2026, the transitional period ends, and importers of selected commodities (steel, cement, aluminum, etc.) will begin to pay for certificates corresponding to the emissions released during the production of imported goods.

• Do I have to register under the Cybersecurity Act (NIS2)? The Act introduces the principle of self-assessment. A company must itself verify 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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