The costs of mandatory COVID-19 tests for employees to be tax deductible in The Czech Republic

The Czech Republic can be a role model for other countries in helping employers to manage the costs of tests for the COVID-19 virus. On 14 May, the Financial Administration of the Czech Republic clarified on its website information regarding the payment by employers of mandatory COVID-19 tests for employees.

Hence, the expenses for such mandatory tests are considered:

1. On the part of employees, it is a non-taxable income because there is a compulsory performance of the employer for the creation and observance of working conditions for the performance of work stipulated by a legal regulation that is not subject to tax according to the Income Tax Act.
2. On the employers’ side, such expenses are fully tax deductible for the employers.

Information Source: The Czech Republic, Financial Administration