Amendment to Accounting Procedures

The amendment to the Act on Accounting No. 248/2024 Coll. in connection with crypto-assets, which we informed you about in Daňovky, also prompted an amendment to the Accounting Procedures, namely by the Decree of the Ministry of Finance No. MF/014948/2024-74 from 11 December 2024.

Some adjustments regarding crypto-assets and tokens:

• Electronic money tokens are considered short-term financial assets.
• Short-term financial assets also include assts accounted for in account group 25, including a crypto-asset, (except for an electronic money token) that is a crypto-asset acquired for consideration, a crypto-asset acquired by means of verification of transactions in the network of that crypto-asset as of the date of exchange for another asset or service, a crypto-asset acquired by means of exchange for another crypto-asset, and a crypto-asset acquired free of charge.
• New Article 30f is added which regulates the accounting treatment in the accounting books of the issuer of a utility token and other crypto-assets.

In addition to the detailed accounting treatment of crypto-assets and tokens, the amendment also brings the following changes and amendments:

• For the purpose of accounting for deferred tax, the top-up tax shall not be considered. Information about this fact and the part of the expense related to the income tax due attributable to the top-up tax shall be provided in the notes to the financial statements
• An accounting entity that accounts for deferred tax and is not the payer of the top-up tax but expects to become subject to that tax in the subsequent accounting period shall provide information about this expected event in the notes to the financial statements, along with a description and calculation of the estimated impact of the top-up tax on the accounting entity.
• The top-up tax shall be debited to the accounts in account group 59 - Income taxes and transfer accounts and to account 341 - Income tax.
• Account 538 - Other taxes and fees shall also be used to account for the financial transaction tax.

The provisions regarding the top-up tax became effective on 31 December 2024, while the provisions regarding crypto-assets and tokens and the financial transaction tax enter into force on 1 January 2025.

According to the transitional provisions regarding to the top-up tax effective from 31 December 2024, they are applied for the first time when preparing the financial statements as of 31 December 2024. If the accounting entity prepares financial statements as of a date preceding 31 December 2024, these provisions may also be applied when preparing the financial statements if the financial statements are prepared after 31 December 2024.