• Service: Tax, Global Indirect Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/15/2014

Czech Republic - Investment fund taxation, other changes for individuals 

April 15: The Czech Minister of Finance cancelled plans to unify by 2015 the collection of individual (personal) income tax and public insurance contributions.

In addition, proposed amendments would:

  • Adjust the taxation of investment funds
  • Increase tax credits for taxpayers with children
  • Reintroduce a basic tax credit for working pensioners
  • Restrict lump-sum expenses deducted by self-employed persons
  • Repeal a requirement to file income tax returns for employees subject to a solidarity tax surcharge

Other planned changes, effective 2016, would effectively repeal the solidarity tax surcharge.

Read an April 2014 report prepared by the KPMG member firm in the Czech Republic: Financial Update (April 2014)

Also included in this KPMG report are discussions of the following topics:

  • Changes in the place of taxable supply relating to certain services from 1 January 2015
  • Support of professional and vocational education in the Income Tax Act
  • Complementary agreement on social security between Czech Republic and the United States
  • Extended exchange of information within the EU Savings Taxation Directive
  • Supreme Administrative Court: Tax losses can also be claimed as deductible during tax inspections
  • Supreme Administrative Court: Entitlement to a VAT deduction claimed by entities involved in fraudulent chains
  • CJEU on the right to deduct VAT affected by an incorrectly applied VAT regime and on repeated tax investigations

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