Czech Republic: Update on transfer pricing assessments

Czech Republic: Update on transfer pricing assessments

In the Czech Republic, the tax administration in 2016 conducted approximately 900 transfer pricing inspections—revealing a year-on-year increase of more than 10% in the number of audits.

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The following table reflects tax assessments resulting from the increasing number of transfer pricing inspections over the past five years.

Year Additionally assessed tax in CZK Increase in the tax base in CZK Decrease of reported tax loss
2013 71 759 104
336 386 414 131 267 918
2014 59 402 410 259 612 320 244 221 586
2015 446 263 377 2 431 935 440 390 970 153
2016 886 116 252 4 783 203 802 8 502 980 932


Read more in a May 2017 report prepared by the KPMG member firm in the Czech Republic: Transfer pricing: financial administration’s number one hit

 

The statistics reveal that the tax administration continues to have a growing interest in transfer pricing (whereas, in the past tax officials seemed to prefer to avoid transfer pricing issues, and transfer pricing inspections were quite rare). Read TaxNewsFlash-Transfer Pricing that reports information about the status of transfer pricing audits as of May 2016.

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