Amendment introducing the consolidation package 2026

Amendment Introducing the Consolidation Package – What Awaits Taxpayers from 2026?

A comprehensive amendment introducing the so-called Consolidation Package will enter into force in January 2026. Its primary objective is to stabilise public finances, while simultaneously imposing several new obligations and regulatory changes for employees, entrepreneurs, and corporate taxpayers.

Key measures include:

• Introduction of two new progressive personal income tax brackets targeting high-income individuals.

• Increase in health insurance contributions for selected categories of taxpayers.

• Modification of the calculation of the spouse non-taxable allowance.

• Abolition of the current tax and social security exemption for income paid to employees during periods of sick leave, parental leave, and maternity leave.

• Revisions to the social insurance obligations of self-employed individuals (SZČO), including the removal of the minimum declared business income in the tax return.

• Changes in VAT rules – including restrictions on input VAT deduction for vehicles used for both business and private purposes, and an increase of the VAT rate on selected food products to 23%.

• A tax amnesty for taxpayers who voluntarily declare or settle outstanding tax liabilities by 30 June 2026.

• Additional significant amendments, all summarised in the attached newsletter.

In our latest BDO Newsletter, you will find not only an overview of all key measures, but also practical impact illustrations and recommendations from our expert, Radovan Ihnát.

Although most provisions become effective in 2026, we encourage employers and taxpayers to prepare proactively—for example by reviewing their benefit structures, remuneration schemes, and opportunities for optimising tax and social contribution liabilities.