Petr Němec | 17.12.2024
Internet platforms and continuation of DAC 7 reportingTaxes, accounting, law and more. All the key news for your business.
| November 19, 2024
As of 1 October 2024, the amendment to the Code of Civil Procedure allows for an increase in deductions from the wages of employees, against whom at least 4 distrainments are being conducted simultaneously. Up to two-thirds of the net wages remaining after deduction of the uncollectible amount can now be deducted, even if it is a non-priority claim. Until now, the law allowed only one-third of the wages to be withheld to recover a non-priority claim – two-thirds were withheld only for priority claims, e.g. for maintenance, taxes and other similar monetary transactions.
In order to double the deductions made, the payer must be served with an enforcement order. However, there is an exception to the new provision, namely if the obliged employee is a recipient of an old-age, orphan’s or disability pension for the second or third degree, and at the same time his remaining third of the salary does not reach the amount of CZK 1,089 (i.e. the amount equal to the sum of monthly out-of-pocket expenses and the monthly remuneration of the insolvency administrator due in the insolvency for the period of the instalment plan plus value added tax). If the obliged employee meets both conditions at the same time, the amount of his deduction does not change.