Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/18/2013

Czech Republic - Tax rates for investment funds proposed 

October 18:  Pending legislation in the Czech Republic, approved by the Senate, would provide for a continuation of the following tax rates for investment funds:
  • 5% corporate income tax rate on investment funds
  • 15% withholding tax rate on payment of profit shares

Investors that are legal entities and satisfy the criteria under the directive on taxation of parent companies and their subsidiaries would be allowed to claim an exemption from tax on these equity investments.

Other pending measures

Among other significant tax provisions approved by the Senate are measures that would:


  • Integrate an inheritance and gift tax into the tax law
  • Extend the income tax exemption available to individuals with respect to the sale of securities, from six months to three years
  • Increase research and development (R&D) support
  • Simplify the adjustments to receivables
  • Provide a deduction to support professional educational.

VAT

Concerning value added tax (VAT), there is a provision to amend the application of VAT on real estate transfers. Beginning in 2014, transfers of land on which structures or underground utilities have been erected would be subject to the same VAT regime as transfers of buildings.

What’s next?

The legislative proposals now must be approved by the Chamber of Deputies after the October elections, at its commencement session on 26 November 2013.


Read an October 2013 report [PDF 286 KB] prepared by the KPMG member firm in the Czech Republic: Financial Update (October 2013)




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