New tax year in Europe: Key changes you need to prepare for in 2025

Czech Corporate Income Tax

The corporate income tax rate increased from 19% to 21% last year. This change will first apply in 2025, in the 2024 corporate tax returns.

Czech Personal Income Tax

A new limit of CZK 40 million has been introduced for the tax exemption of income from the sale of securities held for more than 3 years, business shares held for more than 5 years, and crypto-assets held for more than 3 years (new possibility). Any income exceeding this limit will be subject to taxation.

Income from crypto-assets is newly tax exempt also if the annual gross income is below CZK 100 thousand (similar as securities).

In the area of employee benefits, from January 1, 2025, the tax-free limit for non-monetary benefits increased to CZK 23,279. Besides this, new limit for non-monetary health benefits equal to the average wage (CZK 46,557 for 2025) was introduced.

There was a change in the taxation of income from work performance agreements. The limit for earnings without social security and health insurance contributions and application of special withholding tax is set at 25 percent of the average wage (CZK 11,500 for 2025).

Kateřina Hrůzová
Tax Director at Accace Czech Republic

Czech Value-Added Tax (VAT)

There was an extensive amendment of Czech VAT act effective from 1 January 2025 which brought many changes.

First of all, there are two thresholds for VAT registration. If a business exceeds CZK 2,000,000 in turnover from activities with a place of supply in the Czech Republic within the calendar year, it will become a VAT payer from January 1 of the following year or immediately the day after the exceeding the threshold (whatever it choses in the application form). However, if turnover exceeds CZK 2,536,500, the business becomes a VAT payer immediately the day after exceeding the threshold.

One of the key changes is the reduction of the deadline for claiming VAT deductions from three years to two years from the end of the calendar year in which the claim arose.

There is also significant extension of the deadline for corrections of the tax base (issuance of corrective VAT documents – both credit notes and debit notes) from the three years to seven years from the original taxable supply.

The amendment also brought many changes in the areas of VAT treatment of bad debts, immovables or place of taxable supply of certain services. It also introduced a new cross border VAT regime for small enterprises.

Czech Excise Duties

From January 1, 2025, the excise tax on cigarettes, smoking tobacco, cigars, and cigarillos will increase by 5% annually, continuing at the same rate in 2026 and 2027. The excise tax on spirits will increase by 10% in 2025.

Marcela Hýnarová
Tax Manager at Accace Czech Republic

The tax changes in 2025 will have a significant impact on Hungary’s tax system, bringing changes in several areas. Most changes have come into effect on January 1, 2025, and will affect almost all taxes. 

As far as personal income tax goes, there will be an increase in family tax benefits. This will happen in two stages: from July 1, 2025, and from January 1, 2026. First, the allowances will be increased by 50%, then the family allowance will be doubled compared to the current situation. 

The SZÉP card system will also change, with the introduction of a new sub-account called “Active Hungarians,” which can be used for services related to active leisure activities. The annual limit will increase from HUF 450,000 to HUF 570,000, and 50% of the amounts on the card can also be used for home renovations during 2025.   

In addition, employers can support their younger employees with their accommodation, providing aid to mortgage payments and rents up to HUF 150.000 per month with beneficial taxation – this will only be available up to the age of 35. 

There will be significant changes to the retail tax system making online marketplace platforms subject to tax. While green tax will no longer be applicable in case of products also affected with the EPR system, some taxes will be subject to yearly inflation-based increase (such as company car tax, vehicle tax). 

Private accommodations in Budapest will have different taxation from this year with an increased flat-rate tax per year. 

The EU-wide VAT exemption for small business will be introduced in Hungary as well and there are several changes in administrative procedures from 2025 as well.  

dr. Roberto Petrovits
Senior Consultant at Accace Hungary

The beginning of the year is always exciting, especially in 2025. This January brings significant political changes that will affect the global economy. The new U.S. President’s statements have already influenced the global minimum taxation system.

The rapid digitalization of tax systems worldwide presents both challenges and opportunities for businesses. In 2025, Polish regulations will introduce digital reporting for corporate income tax and implement a common e-invoicing system, which has already been postponed several times. Adapting to these changes will offer a competitive advantage, while those who delay will face difficulties.

Discover more changes that the new tax year has brought in Poland:

• Act implementing the global minimum tax in Poland, signed by the President of Poland
• JPK CIT in Poland – a new reporting obligation for Polish CIT taxpayers from 2025 
• Polish real estate tax: Changes introduced from 2025

Piotr Zając
Managing Director & Partner at Accace Poland

In 2025, the fiscal environment in Romania is becoming increasingly complex, with significant changes in tax regulations impacting businesses across all sectors. Stricter compliance requirements, the removal of certain tax incentives, and new income thresholds for specific entities demand a more strategic approach to tax planning. Companies should focus on accurate tax reporting and on ensuring compliance with the latest fiscal regulations to avoid penalties and unnecessary costs. A proactive tax strategy, backed by expert advisory services, is essential for financial stability in this changing environment.

Discover more changes that the new tax year has brought in Romania:

• Major tax changes in Romania brought by Government Emergency Ordinance 156/2024: What you need to know and how to prepare?
• SAF-T reporting process in Romania: Automatic notifications for taxpayers who fail to submit their declarations
• SAF-T Reporting in Romania: How to simplify the reporting process

Eugen Bursuc
Accounting Director at Accace Romania

The most significant tax changes effective from January 1, 2025, are part of a fiscal consolidation package aimed at strengthening public finances and reducing the national deficit. The major changes include adjustments to VAT rates, income taxes, and the introduction of a new tax on financial transactions.

The VAT changes involve an increase in the standard rate from 20% to 23%, with reduced rates of 19% and 5% applied to specific goods and services. Corporate income tax has been adjusted to introduce a new 24% rate for companies with taxable income exceeding EUR 5 million, while smaller businesses with turnover under EUR 100,000 benefit from a reduced rate of 10%. For all other companies, the corporate income tax rate remains unchanged at 21%, as it was prior to 2025.

With the first tax period beginning in April 2025, the new tax on financial transactions will take effect. Key rates include 0.4% on debit transactions (capped at EUR 40), 0.8% for cash withdrawals, and EUR 2 annually for payment card use, with several exceptions such as intra-bank transfers and tax payments. In general, banks will be responsible for calculating and collecting the tax; however, this obligation may, in some cases, fall directly on the taxpayer. The introduction of this new tax will result in higher tax obligations for companies operating in Slovakia. While the law aims to boost public finances, it also imposes administrative burdens on businesses, especially those using foreign accounts, requiring compliance with reporting and tax payment obligations.

Additionally, starting January 1, 2025, a new tax on sweetened non-alcoholic beverages, along with various other measures affecting businesses in Slovakia, will come into effect. For individuals, the dividend tax has been reduced to 7%, following a one-year period during which it was taxed at 10%.

While some steps, like the reduced dividend tax for individuals and the 10% corporate tax rate for businesses with turnover below EUR 100,000, are favorable, making small businesses the most positively impacted by these changes, the adjustments will hit hardest on companies with turnover exceeding EUR 5 million, which face the new 24% tax rate, and those with a high volume of debit transactions or substantial payroll costs. This is particularly burdensome as wages paid to employees are subject to the tax on financial transaction without any cap, and in the case of a large number of debit payments, the EUR 40 limit will apply separately to each transaction.

Michaela Salayová
Senior Tax Manager at Accace Slovakia

The changes in tax legislation in Ukraine began in 2024, with 2025 bringing a series of significant updates that will impact businesses, financial institutions, and individuals. Among the most notable changes are the increase in corporate income tax rates, adjustments to transfer pricing rules, and the introduction of new obligations for individual entrepreneurs. Additionally, several tax benefits have been abolished, and there are new requirements for the payment of military duty, rent, and land taxes. These modifications aim to streamline the tax system and align it with current economic conditions. For a deeper understanding of the specific legislative changes, important deadlines, and how they will affect businesses and individuals, refer to the detailed information provided in the publications linked below.

Discover more changes that the new tax year has brought in Ukraine:

• 2025 Tax calendar for Ukraine
• Payroll legislation changes in Ukraine for 2025 | News Flash
• Tax changes in Ukraine: a complete overview for 20255

Anna Magdich
Managing Director at Accace Ukraine