Czech Republic: Tax legislation proposed for 2017 | KPMG | GLOBAL

Czech Republic: Update on tax legislation proposed for 2017

Czech Republic: Tax legislation proposed for 2017

Given comments received about a proposed 2017 amendment to the income tax law, the tax administration has revised its proposal and has abandoned (at least for now) some of its original intentions.


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Specifically, the tax administration has decided to abandon plans to:

  • Impose a restriction on the application of section 23(4)(e) concerning non-taxation only in instances of re-billing of non-deductible expenses
  • Revise the tax treatment of interest paid to individuals 

On the other hand, the tax administration will continue with its proposals regarding a number of other issues, such as extending the possibility of depreciating technical improvements made by sub-lessees to assets acquired before the effective date of the amendment or gratuitous supplies. 

Finally, there are reports that the Ministry of Finance is working on an entirely new income tax law that may be unveiled in September 2017.


Read a May 2016 report [PDF 489 KB] prepared by the KPMG member firm in the Czech Republic

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