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.”

 

Read a March 2016 report [PDF 435 KB] prepared by the KPMG member firm in the Czech Republic: Tax and Legal Update

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