As part of the consolidation package, one of the approved changes is the limitation of the purchase price of company cars to CZK 2 million (EUR 82k). The limit of CZK 2 million is the maximum value for the tax depreciation. A purchase price exceeding the above limit is not considered tax-deductible.
Furthermore, the amendment to the VAT Act introduces a maximum limit for input VAT deduction in the amount of CZK 420,000 (EUR 17k) for the purchase price of a company car.
This limit includes both the purchase of the vehicle and its technical improvement.