Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/12/2012

Czech Republic – Investor funds taxation, VAT reverse charge 

September 12:  Recent tax developments in the Czech Republic include the following legislative proposal, administrative guidance, and judicial findings:
  • Corporate income tax rate to remain at 5% for qualified investor funds: Pending legislative changes, the 5% income tax rate will continue to apply both to funds intended for the public and qualified investor funds.
  • Guidance on the VAT reverse charge for the construction sector: Taxpayers that act in “good faith” (even when their processes did not comply with instructions) are not to have their declarations challenged, provided the rules were similarly followed and applied by the supplier and the customer / supply recipient—so that in the end, the income to the state budget is not negatively affected.
  • Supreme Administrative Court on formation of a permanent establishment when carrying out activities at the premises of another entity: The court concluded that welding work performed on individual parts of products intended for sale and performed at the premises of another entity may constitute the formation of a permanent establishment in the form of a fixed place of business.

Read a September 2012 report [PDF 245 KB] prepared by the KPMG member firm in the Czech Republic: Financial Update (September 2012)




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