Changes in labour law
We have already informed you about the amendment to the Labour Code from last year. As of 1 January 2021, the amendment will make the calculation of holidays based on hours worked, not days, fairer.
Since the beginning of the year, the minimum wage has also been increased again, to CZK 15,200 per month. Along with it, the guaranteed wage for individual groups is also rising, e.g. doctors will have a minimum guaranteed wage of CZK 27,500 and payroll accountants CZK 22,600.
Real estate
In the area of real estate, we expect, of course, especially a new construction law, but this is not yet in sight, and the presented versions raise concerns. However, there have been other important changes. To qualify for income tax exemption in the case of the sale of selected real estate, such as holiday buildings or forests, it will now be necessary to meet a time test of 10 years between the acquisition of ownership and the sale. Previously, the time test of 5 years applied.
However, it is now also possible to “exempt” these transfers from tax if the taxpayer uses the proceeds to provide for his or her own housing needs.
The extension of the time test applies to real estate acquired from 1 January 2021 onwards, with the date of filing the application for entry in the Land Register being decisive. We wrote about this earlier in connection with the abolition of the real estate acquisition tax.
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Digitization
Since the beginning of the year, part of the new Digital Service Rights Act has also been in force. The Act gives individuals the right to communicate digitally with the authorities and the authorities the obligation to deal with their requests digitally. It should also resolve the long-standing mischief whereby authorities have often asked citizens for data that they can find out for themselves in public registers.
The new regulation also develops the so-called banking identity. This means that we will be able to log in to the state’s digital services in the same way as we do to our online banking, using the same details.
New territorial division
The new legislation replaces several existing laws on the territorial division of the state. The 1960s zoning system will cease to be valid and the so-called large regions (West Bohemia, North Bohemia, etc.), whose use has disappeared over time, will cease to exist once and for all. However, only in various social games or quizzes will it be useful to know that districts remain as a formal territorial unit, although individuals are practically unaffected.