Corporate Crypto Holdings in 2026: Accounting, Tax and Banking Rules

Mgr. Daniel Půlpán
Mgr. Daniel Půlpán
14.5.2026 | ARROWS law firm

Investing in digital assets has become a standard part of corporate treasury management in 2026. Modern companies commonly protect excess cash against inflation by purchasing Bitcoin or crypto ETFs. However, the tax and accounting treatment of cryptocurrencies held by a company (IČO) differs fundamentally from investing as an individual. This article explains in detail the rules for proper accounting, taxation of profits, and secure communication with banks.

The photograph shows a specialist discussing the tax and accounting treatment of cryptocurrencies.

Key takeaways
  • No time test: Legal entities cannot use the tax exemption after three years of holding that applies to individuals; all profit is taxable income.
  • Classification in accounting: In Czech accounting, cryptocurrencies are typically reported as inventories “of their kind” or as intangible movable property, not as a financial asset or currency.
  • Taxation of realised profit: The tax liability arises at the moment a cryptocurrency is exchanged for fiat currency (CZK, EUR), used to purchase goods, or exchanged for another cryptocurrency.
  • Specifics of cryptocurrency ETFs: Investing via regulated funds and ETFs can simplify accounting administration, but it is subject to the same corporate income tax rate under Czech legislation.
  • Strict AML rules: Companies investing in cryptocurrencies must have the source of funds precisely documented and must meet the requirements of Czech anti-money laundering legislation.

Cryptocurrencies as part of corporate treasury in 2026

The era when cryptocurrencies were seen only as a speculative tool for technology enthusiasts is definitively over. In 2026, digital assets form a legitimate component of the asset base of many progressive Czech companies. The motivation to purchase them under a company ID is clear – an effort to diversify the portfolio and seek higher returns in an environment where traditional savings products often do not keep pace with real inflation.

However, purchasing Bitcoin or Ethereum directly into the company’s assets brings a number of legislative challenges. Unlike standard bank accounts in Czech crowns or euros, there is no separate line item for cryptocurrencies in the Czech Accounting Act. Companies therefore have to follow methodological guidance from the Ministry of Finance and interpretations of the National Accounting Council, which define cryptocurrency as intangible movable property.

This classification has a fundamental impact on how the investment is reflected in the financial statements. Cryptocurrency is not considered cash, but an asset measured at historical acquisition cost. For company executives, this means the need to keep very detailed records of every purchase so that profit can be correctly calculated in the future upon sale or exchange.

Investing under a company ID also requires a high level of cooperation between management and the accounting department. Every movement on the company’s crypto wallet must be supported by a credible document from the exchange or broker. Administrative precision is exactly what distinguishes safe corporate investing from gambling with future tax assessments. If you are addressing the setup of internal processes and compliance around corporate crypto assets, it may be useful to link this to our cryptocurrencies practice.

Accounting rules for digital assets for businesses (company ID)

In the Czech accounting environment, the “inventories of their kind” model is most commonly used for cryptocurrencies. This means that the purchase of bitcoin is not recorded as an investment in financial accounts, but as the acquisition of an asset intended for further sale or holding. Upon purchase, the asset is valued in Czech currency using the exchange rate applicable at the time of the transaction.

If a company purchases cryptocurrencies repeatedly at different times and at different prices, it must choose an inventory issue method. The FIFO method (first in, first out) or the weighted arithmetic average method is most commonly used. The chosen method must be described in the company’s internal policy and must be applied consistently throughout the entire investment period.

Cryptocurrencies held at the end of the accounting period are reported in the balance sheet at acquisition cost. However, if the market value of the cryptocurrency as of the balance sheet date falls significantly below the acquisition cost, the company is required to create an impairment allowance. Conversely, Czech accounting rules generally do not allow recognising an increase in value (revaluation to fair value upwards) for inventories.

Profit or loss from the investment is reflected in the accounts only at the moment of realisation. Our practical analysis on the related tax impacts of realisation and the correct reporting of the tax base is also linked to our topic on additional tax return. This is not only a sale for Czech crowns, but any disposal of the asset. If the company pays in cryptocurrency for new software or exchanges it for another type of digital asset, revenue and expense are recognised for both accounting and tax purposes. In similar transactions, it is usually crucial to assess the impacts on corporate income tax and related regimes as well, which is supported by our tax law team in Prague.

Related questions on accounting and record-keeping for cryptocurrencies

1. What documents must a company use to support the purchase of cryptocurrency on an exchange?
The basic document is a trade confirmation generated by the cryptocurrency exchange or broker. This document must include the date, the exact amount of the purchased asset, the price in a foreign currency (e.g., USD), and fees. For accounting purposes, this document must be supplemented with a conversion into Czech crowns using the selected CNB exchange rate or the exchange rate on the exchange.

2. Does a company need a separate bank account for cryptocurrencies?
The law does not require it, but from a practical perspective it is highly recommended. Separating funds intended for investing from day-to-day operating cash flow simplifies documenting the source of funds (AML) and subsequent matching of payments in the accounts. We also address the practical setup of source-of-funds requirements and overall compliance for crypto projects in the article Why ARROWS is the first choice for crypto projects: Ensuring full compliance and a safe path through a still-evolving regulatory environment. In addition, many banks in 2026 require a declaration of the purpose of payments directed to crypto platforms.

3. Is it possible to depreciate cryptocurrencies as intangible assets?
Although cryptocurrencies are intangible assets, by their nature they do not wear out over time like software or patents. Therefore, standard tax or accounting depreciation does not apply to them. Their value in the accounts remains stable until the moment of sale or the need to create an impairment allowance in the event of a market downturn.

Tax regime for cryptocurrency profits for legal entities

The biggest difference compared to investing as an individual is the absence of any tax exemption. While an individual can sell Bitcoin after three years of holding with a 100% exemption from personal income tax, a company operating under a business ID number (IČO) does not have this advantage. Any positive difference between the sale price and the acquisition price is included in the general corporate income tax base.

In 2026, this profit is subject to the standard corporate income tax rate of 21%. The tax is calculated from the company’s overall profit/loss result. This means that any profit from cryptocurrencies can be offset against losses from the core business activity, which may be strategically advantageous for some companies.

An important point is the taxable event. The tax liability does not arise only when you “cash out to a bank account”. If a company exchanges Bitcoin for Ethereum (a crypto-to-crypto exchange), from the perspective of Czech tax law this constitutes a sale of one asset and the purchase of another. At that moment, the profit must be calculated in CZK and included in the tax base, even if the funds remain in the digital world.

This approach places enormous demands on the company’s cash flow. A situation may arise where the company completes many successful exchanges between cryptocurrencies during the year, creating a high tax base, but at the time the tax is due it does not have enough CZK in its account because the funds are still invested in volatile assets.

Specialists from ARROWS advokátní kancelář (office@arws.cz) help companies set tax strategies so that they comply with current case law. Proper timing of the realization of profits and losses can significantly affect the company’s overall tax burden and prevent unnecessary penalties during audits by the Czech Financial Administration.

Mining and staking: Specifics of generating new digital assets

If a company decides not only to buy cryptocurrencies but also to generate them directly through mining or network validation (staking), it enters the area of producing its own inventory. In 2026, cryptocurrency mining is considered a separate business activity that requires the relevant trade authorization and specific cost accounting.

At the moment a mining machine successfully generates a new coin, inventory created by the company’s own activity arises. In accounting, this coin is valued at the company’s own costs of acquisition. These costs mainly include electricity consumed, rent for premises for mining machines, and depreciation. The difference between these costs and the market price at the time of sale constitutes the company’s taxable profit.

Staking, i.e., the process of holding cryptocurrencies in special accounts to support the network, generates regular rewards in the form of new coins (staking rewards). From the perspective of the Czech Financial Administration, these rewards are treated as other taxable income at the moment the company acquires the right to dispose of these coins. This means that even if you do not sell the coins, you must include their market value at the time they are credited as revenue.

For companies operating staking, it is essential to keep a precise transaction log. In 2026, the Czech Financial Administration’s automated systems can already identify increases on known corporate addresses. If this income is not properly reported and taxed in the given year, additional assessment of tax on non-cash income may follow. The ARROWS legal team can help you set internal policies for correct reporting of these digital revenues.

Related questions on cryptocurrency mining and staking

1. Can the purchase of hardware also be included in mining costs?
Yes, mining machines (ASIC miners or GPU rigs) are standard depreciable assets of the company. If their acquisition price exceeds the statutory threshold for fixed assets, the company applies annual depreciation, which reduces the tax base from revenues generated by mining.

2. How are staking rewards taxed if they are automatically reinvested?
For tax purposes, income arises at the moment the coins are credited to your balance, regardless of whether they are “locked” for further staking. You must therefore value them at the market exchange rate on the crediting date and include them in the taxable revenues of the relevant period.

3. Does a company need a special permit for cryptocurrency mining?
In 2026, miners within the EU are subject to stricter rules regarding energy intensity and emissions reporting (in line with MiCA). In addition to standard trade registration, it is also necessary to monitor specific environmental reporting obligations if mining exceeds a certain energy output.

Crypto ETFs and funds: Administrative simplification?

For companies that want to avoid the complex technical management of private keys and keeping detailed records of individual coins, in 2026 a route via regulated crypto ETFs is available. ETF purchases are made through standard stock brokers and are treated in accounting as a security.

From an accounting perspective, a Bitcoin ETF is much more straightforward. The company is not dealing with the purchase of “goods”, but with the purchase of a financial asset. The burden of proving the existence of digital coins in wallets falls away. Brokers also usually provide comprehensive annual statements, which are much easier for Czech accountants to understand than statements from unregulated crypto exchanges.

From a tax perspective, however, nothing changes for legal entities with ETFs. The 21% rate on realized profit still applies, and there is still no time test for exemption. The advantage remains a higher degree of legal certainty. Regulated ETFs meet all requirements of European legislation, which significantly reduces the risk that the Czech Financial Administration would challenge the origin of the asset or the valuation method.

Investing in ETFs also eliminates security risks associated with hacking or the loss of access credentials to the company wallet. On the other hand, the company loses direct control over the asset and must pay the fund’s management fees. The choice between a direct purchase and an ETF should therefore always be subject to a thorough cost-benefit analysis.

Potential issues when investing under a business ID number (IČO)

How ARROWS helps (office@arws.cz)

Blocking of the company bank account after transferring funds to a crypto exchange.

We will prepare a legal opinion and AML documentation for the bank to demonstrate the lawful origin and purpose of the funds.

Additional assessment of tax on unrealized exchanges between different cryptocurrencies (crypto-to-crypto).

We will review the transaction history and correctly calculate the tax base using the FIFO method or average-cost methodology.

Loss of access to company assets upon the death or departure of a key managing director.

We will set up corporate mechanisms and legal escrow of access credentials to ensure continuity of asset management.

Non-recognition of costs for purchasing cryptocurrencies due to insufficient documentation of the purchase price.

We will help set internal policies and processes for archiving reliable accounting documents from digital platforms.

Penalties for breaches of AML obligations due to incorrect identification of the wallet’s beneficial owner.

We will prepare a complete internal anti-money laundering prevention system (AML) tailored to crypto-assets.

VAT and cryptocurrencies: Current regime for 2026

The issue of value added tax (VAT) on cryptocurrencies was disputed for a long time, but by 2026 the situation has stabilised thanks to the case law of the Court of Justice of the EU. The exchange of Czech crowns for Bitcoin and vice versa is considered a financial activity that is exempt from VAT without entitlement to deduct input VAT.

For a company, this means that when purchasing cryptocurrency via an invoice or an exchange, it does not add any VAT to the price and does not claim any VAT either. If a company only buys and holds cryptocurrencies as an investment, it does not create any complications for its VAT reporting. In this respect, cryptocurrencies behave similarly to money or shares.

The situation becomes more complex if a company starts accepting cryptocurrencies as payment for its goods or services. In such a case, the company must issue an invoice in Czech crowns (including any VAT depending on the type of goods) and state on the document the exchange rate used to convert the cryptocurrency payment. The receipt of the “cryptocurrency” itself is then merely a method of settling the receivable.

If the company subsequently sells these received cryptocurrencies at a profit, this profit from the sale of the “means of payment” is again exempt from VAT. However, it is necessary to watch out for a reduction of the entitlement to deduct VAT on the company’s overhead costs. If exempt financial activities (sale of crypto-assets) make up a significant part of the company’s turnover, the company may be required to reduce VAT deductions, for example on rent or advisory services.

Security and AML compliance in corporate investing

Managing cryptocurrencies under a company ID (IČO) requires a much higher security standard than for individuals. A company cannot rely on one executive having the wallet password on a mobile phone. It is essential to implement multi-level transaction approval (multi-sig wallets), where multiple people must approve the transfer simultaneously in order to send funds.

In addition to technical security, AML is a critical topic. In 2026, banks are extremely sensitive to any money flows connected with cryptocurrencies. If a company sends millions to an exchange without notifying the bank in advance, it risks immediate termination of its account. Banks will require evidence that the invested funds come from properly taxed business profits.

The same vigilance is necessary when withdrawing funds back into the banking system. The bank will want to see the full transaction history on the exchange to rule out that the corporate account has become a pass-through channel for anonymous third-party funds. Insufficient documentation of transaction history is the most common reason for reporting a suspicious transaction to the Financial Analytical Office (Finanční analytický úřad).

ARROWS lawyers help clients prepare “Source of Wealth” and “Source of Funds” reports. These documents explain to the bank in advance the origin of the funds and the rationale of the investment operations. Thanks to this preventive step, corporate transfers run smoothly and without the risk of blocking working capital. Contact us at office@arws.cz to set up a secure framework for your investment.

Cryptocurrencies in a holding structure: Strategic asset management

For high-net-worth entrepreneurs and larger groups of companies, holding cryptocurrencies within a holding structure is becoming the standard in 2026. This model makes it possible to separate high-risk digital assets from the main operating company, thereby protecting the core business from potential market downturns or enforcement proceedings. In this case, cryptocurrencies are typically held in a special parent company or an entity designated for asset management.

The advantage of a holding is the possibility of efficient recapitalisation. If a subsidiary generates profit, it can distribute it to the parent company in the form of a dividend, which then invests these funds into Bitcoin. If the statutory conditions for dividend exemption are met, capital is transferred without a tax burden at the subsidiary level, maximising the amount of funds available for investment.

A holding structure also facilitates a potential exit from the investment. If a company holds cryptocurrencies through a subsidiary, an investor can sell the entire shareholding in that company. Subject to meeting the five-year time test, this sale of the shareholding may be exempt from income tax, providing a way to access cryptocurrency gains indirectly without having to pay 21% corporate income tax.

However, when establishing a crypto-holding, it is necessary to observe transfer pricing rules and the prohibition of abuse of law. The Financial Administration closely monitors whether asset transfers between related parties reflect market reality. Our specialists at ARROWS International will help you design a structure that ensures maximum protection of your digital wealth in line with international standards.

Related questions on holding structures

1. Can cryptocurrencies be paid out to a shareholder as a dividend?
Yes, a dividend in kind (in cryptocurrencies) is possible if the company’s articles of association allow it. From a tax perspective, however, such a payout is treated as if the company sold the cryptocurrency at market price and paid cash to the shareholder. The company must therefore tax any gain from the increase in the cryptocurrency’s value.

2. How does the transfer of cryptocurrencies between sister companies work?
Any transfer must be supported by a legal title, for example a purchase agreement or a loan agreement. The price must always be set at the market level at that moment. Free transfers of assets between companies are not tax-deductible and constitute a taxable gift for the receiving company.

3. Is it more advantageous to hold cryptocurrencies in a Czech or foreign holding entity?
It depends on the investor’s overall strategy. The Czech Republic offers a stable environment and clear rules (MiCA), while some foreign jurisdictions may offer advantages in a future sale of the entire structure. At ARROWS, we always assess the client’s individual needs within international tax planning.

Valuation of cryptocurrencies as of the balance sheet date

The end of the calendar or financial year brings an obligation to revalue assets. As we have already mentioned, Czech accounting legislation is conservative in this respect. If a company reports cryptocurrencies as inventory, they are valued as of the balance sheet date at the lower of the two values—either acquisition cost or current market value, if lower.

This asymmetric approach means that a market downturn will be reflected in the profit and loss result as an expense that reduces profit. Conversely, a sharp increase in the price of bitcoin at year-end will not be reflected in the accounts at all and remains a hidden reserve gain that will be taxed only at the moment of an actual sale in the following year.

This accounting methodology allows companies a certain degree of lawful tax optimisation. If the market is in a deep decline at year-end, the company can, thanks to an impairment adjustment, lawfully reduce its tax base from other business activities. However, it is necessary to substantiate the market price as of the balance sheet date with a credible source.

For cryptocurrency ETFs, the situation is different. If they are classified as financial assets held for trading, they are revalued to fair value as of the balance sheet date in both directions. In such a case, even an unrealised increase in the ETF price will be recognised as income and increase the company’s tax liability without any actual sale. The distinction between direct holding and ETFs is therefore absolutely key for the annual closing.

Final summary

Investing in cryptocurrencies under a company ID number (IČO) in 2026 offers modern businesses an attractive way to protect and grow capital. However, it is a discipline that does not forgive administrative or legal mistakes. Correct classification of the asset in accounting, precise transaction records, and understanding the tax differences compared to individuals are the cornerstones of a successful corporate strategy.

The absence of a time test and the requirement to tax crypto-to-crypto exchanges make corporate investing a demanding process that requires close cooperation between management, accountants, and legal advisors. Underestimating AML rules or access security can then lead to a fatal freezing of funds or the loss of the entire invested assets.

If your company is considering entering the world of digital assets, or if you already hold cryptocurrencies and are not sure whether your accounting and tax procedures are correct, do not risk unnecessary issues with authorities or banks. Contact us and secure professional legal and tax support for your investment.

Legal and tax specialists from ARROWS, a Prague-based law firm, will promptly review your internal processes, prepare the necessary internal policies, and help with communication with banks and the Financial Administration. Contact us with confidence today at office@arws.cz and build your digital portfolio safely and with peace of mind.

FAQ – Most common questions on corporate investing in cryptocurrencies

1. Can the managing director of an s.r.o. transfer cryptocurrencies from the company to their private account?
Yes, but only in the form of a profit distribution or remuneration. This transfer must be valued at the market price at the time of transfer and is subject to the same taxation as a cash payout. A direct transfer without a legal basis would be considered an unauthorized extraction of assets from the company.

2. How is cryptocurrency mining taxed under a company ID number (IČO)?
Mining is considered a business activity. The mined coins are recorded at the time of acquisition as inventory produced by the entity’s own activity, valued at own costs. Taxable income then arises only upon their subsequent sale or exchange, when these costs are deducted from the proceeds.

3. Can cryptocurrencies be contributed to the registered capital of an s.r.o. upon its incorporation?
Yes, the Business Corporations Act allows this as a non-cash contribution. However, the cryptocurrency must be valued by an expert report, and the condition of transferability and economic usability must be met. In 2026, this is a sophisticated process requiring the assistance of a notary and an expert.

4. Our company buys crypto via Revolut Business. Is that sufficient as supporting documentation?
Statements are acceptable if they contain all required details (identification of the parties, quantity, price, date). However, it is necessary to ensure that the account is truly held in the company’s name (IČO) and not in the managing director’s private name; otherwise, the investment cannot be legally recorded in the company’s accounts.

5. Does purchasing cryptocurrencies affect a company’s audit obligation?
Investment in cryptocurrencies may indirectly lead to meeting the criteria for a statutory audit if the value of the assets significantly increases the balance sheet total above the statutory thresholds. In addition, the auditor will require specific confirmation of the existence and ownership of crypto assets, for example by signing a message with a private key.

Notice: The information contained in this article is of a general informational nature only and serves for basic orientation in the matter under the legal framework as of 2026. Although we take maximum care to ensure the accuracy of the content, legal regulations and their interpretation evolve over time. We are ARROWS, a Prague-based law firm, an entity registered with the Czech Bar Association (our supervisory authority), and for maximum client safety we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of regulations and their application to your specific situation, it is necessary to contact ARROWS, a Prague-based law firm, directly (office@arws.cz). We accept no liability for any damages arising from the independent use of the information from this article without prior individual legal consultation.

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