New Financial Transactions Tax – Current Regulations
Effective from January 1, 2025, the new Act No. 279/2024 Coll. on the Financial Transactions Tax and related amendments has come into force.
April 2025 will be the first tax period.
What is subject to the financial transaction tax?
- Financial transactions in which an amount of funds is debited from the taxpayer’s transaction account,
- The use of a payment card issued for the transaction account, for the purpose of carrying out a financial transaction,
- Cash withdrawals from the transaction account,
- Relocated expense related to the execution of a financial transaction that refers to the taxpayer’s activity carried out within the domestic territory.
The tax base is the amount of funds debited from the taxpayer’s account during the financial transaction or the amount of re-accounted costs.
Examples of exceptions from the tax subject
- Payment of taxes, contributions, and fees that are part of the state budget revenue,
- Payment of contributions to the Social Insurance Agency and health insurance providers,
- Payment related to the purchase of government bonds,
- Payment transaction conducted within postal payment systems,
- Payment transaction conducted between the taxpayer’s accounts held with the same payment service provider,
- Payment transaction carried out by a payment card, excluding cash withdrawals,
- Payment transaction by a securities trader or a provider of crypto-asset services.
Who is considered a taxpayer?
- A natural person – entrepreneur,
- A legal entity,
- A branch of a foreign entity.
that is a user of payment services provided by a payment service provider executing financial transactions and meets one or more of the following conditions:
- It has its registered office or place of business within the domestic territory,
- It holds a payment account with a payment service provider having its registered office in the domestic territory,
- It conducts activities within the domestic territory (whether registered or not for VAT purposes).
Who is the taxpayer for the financial transactions tax?
- A payment service provider with its registered office in the domestic territory,
- A branch of a payment service provider located in the domestic territory,
- A taxpayer who is a user of payment services provided by a payment service provider with its registered office outside the domestic territory,
- A taxpayer to whom the costs are alocated in relation to the execution of the financial transaction which relates to the activity of the taxpayer carried out within domestic territory,
- A taxpayer who performs financial transactions on an account other than a transaction account.
Tax rates
Transaction | Tax rate | Tax amount |
Funds debited from the taxpayer’s account during a financial transaction | 0,4% | Max. EUR 40 |
Cash withdrawal | 0,8% | No limit |
Payment card used for a financial transaction at least once during the calendar year | EUR 2 / year | |
Rebooked costs related to the execution of a financial transaction that pertains to the taxpayer’s activity conducted within the domestic territory | 0,4% | No limit |
Rebooked costs related to the execution of a financial transaction that pertains to the taxpayer’s activity within the domestic territory, if the taxpayer can demonstrably identify these costs by individual transactions | 0,4% | Max. EUR 40 |
Tax period and obligations of the taxpayer
The tax period is the calendar month, with the first tax period being April 2025.
When using a payment card, the tax period is the calendar year in which the payment card was used.
The tax period for a taxpayer to whom relocated costs are charged is the calendar month in which the taxpayer paid the relocated costs, with the payment also being considered as the offsetting of receivables.
The taxpayer is required to calculate, collect, and remit the tax to the tax authority, and to submit a notification of the tax liability amount using the prescribed form electronically no later than the end of the calendar month following the tax period.
The transaction tax is considered a tax expense.
A taxpayer, a natural person who does not have a transaction account used for financial transactions related to their business, is required to establish such an account no later than March 31, 2025.
Entities that are exempt from the tax are required to notify the taxpayer (usually the bank) that they are not a taxpayer. Taxpayers are obligated to notify the taxpayer that a specific account is used for payments that do not fall under the scope of this tax. If a company fails to fulfill this notification obligation, the law does not provide for any procedure to refund the withheld tax.
- We analyze which transactions will make you a taxpayer or a taxpayer liable for the tax.
- We will explain your obligations and ensure the preparation of the Notification.
- We will calculate the impact of the financial transactions tax on you and your business.
- We will communicate with the tax authority on your behalf.
