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.

Related content

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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform