10.08.2022 Taxes

[Czech Republic] Low-emission vehicle to increase net salary

Employees who also use a company vehicle for private purposes know that this vehicle is taxed in their salary, i.e. pay tax and social security and health insurance. Until 30 June 2022, it was taxed at 1% of the entry price of such a vehicle.

In July this year, a law came into force according to which low-emission vehicles (Euro 5 and Euro 6 standards) are subject to a 0.5% surcharge. This is to encourage employers to purchase and provide low-emission vehicles, which normally have a higher price and thus represent an increased cost not only for employees but also for employers, who also have to pay health and social security on their behalf.

Martin Svoboda Payroll Business Development Manager

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