8 sty 2026
Changes in Czech Corporate Law and Regulation in 2026: A Strategic Overview for Corporate Leadership and Legal Teams
Digitalization of Labor Law Agenda and New Reporting
One of the most significant changes that will fully manifest in practice in 2025 and 2026 is the digitalization of labor law and the tightening of record-keeping for so-called "dohodáři" (DPP – Agreement on Performance of Work). The state is gradually abandoning paper forms and moving to systems where employers report data electronically and in real-time or at monthly intervals. The Czech Social Security Administration (ČSSZ) is becoming a key data hub.
A significant change is the employer's obligation to report all employees on an Agreement on Performance of Work (DPP) to the ČSSZ registry, even those who were not previously subject to premium payments. This step aims to aggregate earnings from multiple agreements with different employers and prevent the evasion of insurance obligations. For companies, this means the necessity to update payroll systems and set up processes so that reports are sent on time.
This change carries fundamental impacts 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 registries. It is no longer enough just to pay the remuneration; what is essential is whether the notification obligation to the state was fulfilled. It is precisely these aspects that supervisory authorities are focusing on, and digitalization allows them automated control.
Practical Impacts and Sanction Regime
Violations of obligations related to the record-keeping and reporting of employees no longer concern only administrative reprimand proceedings. Labor inspectorates have the possibility to impose significant sanctions.
In case of failure to meet registration obligations or failure to keep proper records of working hours, fines may be imposed, which, depending on the severity and size of the employer, can climb up 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 for finding out information about average wages in comparable positions. Confidentiality clauses prohibiting employees from sharing information about their own wages are becoming unenforceable.
Flexible Amendment to the Labor Code: Proposals for 2026
Labor law in the Czech Republic is undergoing a discussion about the so-called "flexible amendment," which aims 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 crucial for international investors accustomed to more flexible markets.
There is a discussion about extending the maximum length of the probationary period and also about the possibility of its additional extension by written agreement. For employers, this would mean more space to verify the competencies of key experts, especially when recruiting from abroad.
A fundamental proposed change is the adjustment of the running of the notice period. Proposals are aimed at the notice period starting to run on the day of delivery of the notice, not on 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 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 categorization of work and cooperation with healthcare providers.
Labor Accidents and Digitalization of OSH
In the area of Occupational Safety and Health (OSH), the trend of digitalization continues. Reports and records 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.
Neglect of the electronic notification of an accident can lead to problems with the reduction of insurance benefits from the statutory employer 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, the effects of which are spread over the years 2024–2026. The changes affect both corporate and personal taxation and require a revision of tax strategies, especially for holding structures.
Research and Development Tax Deductions
The area of deductions for Research and Development (R&D) remains attractive to companies, but at the same time under the scrutiny of the tax administrator. The legislation allows the deduction of R&D costs from the tax base, with the proof of the element of novelty and technical uncertainty being key.
Companies should pay increased attention to the formal accuracy of project documentation, which must exist before the start of the project. In 2026, the possibility of transferring unused deductions to subsequent periods will remain key, which allows for the optimization of the tax liability depending on profitability.
Social Security and Increase in Self-Employed Contributions
A significant adjustment that impacts entrepreneurs – natural persons – is the gradual increase in the minimum assessment base for social security. In 2026, this base is further increased in accordance with the public finance consolidation plan.
This means higher fixed costs for the self-employed. For foreign companies collaborating with Czech contractors, this may mean pressure to increase rates from suppliers.
Taxation of Company and Share Sales
The rules for the exemption of income from the sale of shares in companies have undergone adjustments as part of the consolidation package. The introduction of a limit for the exemption of income from the sale of securities and shares in the amount of CZK 40 million per taxpayer has triggered the need to rethink exit strategies.
For 2026, investors and business owners must count on the fact that sales exceeding the set limits may be subject to taxation if specific conditions are not met or other structures are not 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 Board Members
In the area of international taxation, it is important to monitor changes in the tax regime for the income of statutory body members who are tax non-residents. The trend is moving towards unifying the regime with residents, which may mean a transition from a 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. The turnover and asset values whose exceeding triggers the audit obligation are increasing, which reflects inflation.
A portion of small and medium-sized companies will thus drop out of the obligation to have an audited financial statement, which will reduce their administrative costs. Conversely, for large groups and holdings, the audit remains a key tool of 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 fall on companies in full force in 2026. While some prohibitions apply earlier, the transition 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 established, ensure 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 an extraterritorial impact. 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.
Liability often falls on the deploying entity in the EU. Fines for non-compliance are drastic – they can reach up to 35 million EUR or 7% of global turnover, which exceeds sanctions under GDPR. Supervision in the Czech Republic will likely be divided among industry regulators. Anywhere.legal recommends not underestimating the 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. Regulation newly concerns not only energy or banks, but also 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 a call from an authority but must assess for itself whether it meets the criteria of a regulated entity, and if so, register.
For smaller companies, the security of the supply chain is essential. Large regulated players will contractually push their suppliers to meet strict security standards. Cybersecurity thus becomes a necessary condition for maintaining business relations in the B2B sector.
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Commercial Law and Cross-border Conversions
For holding structures and international groups, the implementation of the directive on cross-border conversions is important, which is fully manifesting in practice. The Act on Transformations of Business Corporations has simplified the processes of cross-border mergers, divisions, and relocations of registered offices.
Flexibility and Mobility
It is now easier to realize cross-border division by spin-off, which is an effective tool for restructuring assets. At the same time, digitalization of communication between commercial registers of EU member states has occurred. A certificate for a cross-border conversion can be obtained and transmitted electronically, which speeds up the whole process.
However, it is necessary to pay attention to the protection of creditors and employees, which has been strengthened. Shareholders who do not agree with the conversion have guaranteed rights to the redemption of shares. These transactions require precise coordination of lawyers and tax advisors in both involved 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 goal is the simplification of divorce proceedings and the adjustment of rules for childcare with an emphasis on the agreement of parents.
For international families where partners come from different countries or the family lives abroad, these changes are essential. The ability to resolve divorce and care in one proceeding and the emphasis on out-of-court settlement speeds up the process and reduces costs. In cross-border cases, however, it is always necessary to resolve the conflict of legal orders and determine which court is competent, which requires expert legal assessment.
Sustainability and ESG: CBAM and Packaging
The year 2026 is key for the Carbon Border Adjustment Mechanism (CBAM). As of January 1, 2026, the transition period ends, and importers of selected commodities from countries outside the EU will have to not only 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, rules for packaging are being tightened. E-shops and logistics companies will have to limit empty space in packages and use recyclable materials. These changes require adjustments in logistics processes and may lead to the redesign of packaging solutions.
Digital Identity (eIDAS 2.0)
The CR continues in the implementation of 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 bring simplification in client verification in the online environment across the entire EU.
Conclusion: Strategic Role of Coordination and Expertise
2026 brings Czech companies a mix of obligations and opportunities. The common denominator of changes is digitalization, transparency, and cross-border connection. Whether it is reporting DPP, compliance with the AI Act, or purchasing CBAM certificates, companies can no longer function 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 solves compliance in the CR, coordination is key. The Anywhere.legal platform allows companies to structure requirements, centralize documents, and safely use AI for initial analyses, while the final solutions are guaranteed by verified experts.
FAQ: Frequently Asked Questions regarding legislative changes in 2026
What are the new obligations when employing on DPP? Employers must electronically report all Agreements on Performance of Work (DPP) to the Czech Social Security Administration, even those that are uninsured. The goal is the record-keeping of concurrent agreements. Upon exceeding limits, the obligation to pay insurance premiums arises.
Who is affected by the obligation according to the AI Act in 2026? Full obligations for high-risk systems (e.g., AI in HR, banking, education) start in August 2026. This concerns developers as well as companies that deploy (use) these systems. They must ensure risk management, data quality, and human oversight.
Are the limits for mandatory audit of companies changing? Yes, as a result of harmonization with the EU, the limits of turnover and assets for the emergence of the audit obligation are increasing (by approximately 25%). Fewer small and medium-sized companies will thus have to have an audited financial statement.
How does the taxation of a company sale work in 2026? Since 2025, a limit of CZK 40 million applies to the exemption of income from the sale of shares and securities (upon meeting the time test). Income above this limit may be subject to taxation if special valuation or transitional provisions are not used. We recommend an individual tax consultation.
What is CBAM and when does it start to apply fully? CBAM is a carbon tax at EU borders. As of January 1, 2026, the transition period ends and importers of selected commodities (steel, cement, aluminum, etc.) must start paying for certificates corresponding to emissions released during the production of the imported goods.
Do I have to register according to the Cybersecurity Act (NIS2)? The act introduces the principle of self-identification. The company must verify for itself whether it falls into a regulated sector and meets size criteria. If so, it must actively register with NÚKIB and implement security measures.
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