Czech Republic: Draft tax legislative proposals | KPMG | GLOBAL

Czech Republic: Draft tax legislative proposals

Czech Republic: Draft tax legislative proposals

The Ministry of Finance released for public comments draft tax legislation. The draft legislative proposals contain fewer than 200 amended provisions.


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Among the proposals are measures that would:

  • Limit the value-related tax exemption of income for the sale of securities by individuals when an annual threshold of CZK 100,000 is not exceeded
  • Affect the tax treatment of supplementary pension plans
  • Limit the applicability of rules allowing for no taxation of revenue associated with non-deductible expenses
  • Require that interest actually be paid in order to allow for the deduction of the interest as an expense
  • Impose withholding tax at a rate of 19% on interest income of certain public benefit entities and unit owner associations 
  • Recognize as a new legal entity for value added tax (VAT) purposes both unit funds and investment fund subfunds

The draft does not include any anticipated changes to the taxation of “gratuitous supplies.”

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