Before the end of 2019, a new law was published in the Collection of Laws, which, with effect from 1 January 2020, amends the Income Tax Act. The aim of this amendment is to support labor mobility and to finance housing construction from sources from the business environment.

Pursuant to the approved amendment, an employer that employs more than 49 employees and is a company or cooperative society may depreciate a building in Group 6 on a straight-line basis over a depreciation period of 6 years, if it is a own building classified in the Codes of classification of buildings 112 (Two-dwell and multi-dwell buildings) and 113 (Other residential buildings), in which the floor area of each apartment is not more than 100 m2. Another condition is that it is a building acquired by purchase or own activity and serving at least 70% for the accommodation of employees in employment relationship with the employer.

At the same time, the exemption of the employee's non-monetary income in the form of secured accommodation has increased, up to a maximum of EUR 100 per month. In the case of an employee whose employment relationship with that employer is of at least 24 months' duration, that exemption shall not exceed EUR 350 per month in aggregate. The exemption shall be determined on a pro rata basis according to the number of days in which the employee's accommodation was provided in the calendar month concerned. In the event that the employer provides a higher amount of non-monetary benefits, the amount exceeding the limit for exemption shall be included in the employee's taxable income.

Under the transitional provisions, the proposed method of depreciation of buildings also applies to buildings classified and depreciated until 31 December 2019 (but not retroactively for previous years), this preferential method of depreciation being used for the first time for a taxable period beginning no earlier than 1 January 2020. The increased exemption of non-monetary income for employees will be used for the first time in providing accommodation after 31 December 2019.