Consolidation package: what it means for companies and sole traders

The term consolidation package has come up in every debate on the state budget in recent years. It is a set of measures through which the state tries to reduce the budget deficit, and it almost always affects entrepreneurs too. If you run a company or do business as a sole trader, it pays to understand the logic behind such packages, even though their specific content varies from year to year.

What a consolidation package is

A consolidation package is usually an act or a group of acts that amend several pieces of legislation at once in order to increase budget revenue or reduce expenditure. On the revenue side, this tends to mean changes to taxes and contributions; on the expenditure side, changes to subsidies and benefits. As the content of every package is different, this article focuses on how to read such a package and what it typically concerns – always check the specific rates and amounts in the wording in force.

Areas a package most often affects

Although the details change, there are certain recurring areas in which a consolidation package usually brings changes.

• Corporate and personal income tax rates
• Value added tax and its reduced rates for selected goods and services
• Special and sector-specific taxes, for example for banks or regulated industries
• The burden of social and health insurance contributions and assessment bases
• New transaction or administrative fees

Impact on companies

For companies, the most sensitive changes are those to the income tax rate and any new sector levies. These directly affect net profit and investment planning. If a company employs people, changes to contributions that increase payroll costs also matter. The impact on administration is often significant too, as new fees or reporting mean more work for the accounting department. With every package, we therefore recommend calculating several scenarios, reassessing planned investments and setting your pricing so that it reflects your real costs, including the new tax items.

Impact on sole traders

Sole traders are most often affected by a package through income tax, flat-rate expenses and minimum contributions. Even a small change in the assessment base can have a noticeable effect on monthly cash flow. It is therefore worth watching not only the tax rate itself, but also how the threshold for applying the lower tax band and the conditions for flat-rate expenses change. For a smaller business owner without a large financial reserve, even a slight increase in compulsory contributions may mean having to adjust prices or reassess expenses, so it is a good idea to keep a simple monthly overview of your obligations to the state.

How to prepare

The best defence is foresight. When a consolidation package starts being debated, follow which measures may affect you and build up a financial reserve. Before the end of the year, review with your accountant what will apply from the new period, and adjust your budget. It is important not to make hasty decisions based on proposals reported in the media – the final wording often changes during the legislative process.

When to consult an adviser

If the package introduces a measure that directly affects your industry, a consultation pays off. A tax adviser can quantify the impact on your specific figures and propose lawful steps to ease the burden. At Bilvao, we will help you understand what the package really means for you and prepare for the changes well in advance.

Related articles: Labour Code amendment: key changes, Overview of tax and contribution changes for entrepreneurs in 2026, VAT changes you need to know about.

Frequently asked questions

Does a consolidation package always mean higher taxes?

Not necessarily for everyone. Packages combine several measures, and some of them may be neutral or even favourable for your situation. The impact depends on the legal form of your business and your industry, so check the specific figures in the wording in force and ideally work them through with your accountant.

When do the measures in the package take effect?

The effective dates of individual measures vary and are often governed by transitional provisions. Some apply from the start of the year, others only later or to income earned after a certain date. Always check the version of the specific act that is in force.