Support of firms involved in vocational education of students
The state has prepared some interesting benefits for companies that have decided to support the education of students in 2014. One of the main reasons why Parliamentary Deputies have approved tax allowances for businesses is to increase interest in the less popular professions, especially in technical fields. The changes can be divided into several categories:
Deduction of expenses incurred in support of the student or pupil: This deduction will be made in multiples of 200 CZK and the number of hours spent in the workplace in practical teaching, professional practice or learning activities within an accredited college or university degree program.
Deduction on the support of the acquisition of assets for training: This innovation allows companies to apply an additional deduction of 50 or 110 % on the cost of a property (of which the company is the first owner) acquired and at least partially used for the training of students. To prevent abuse some conditions for claiming the deduction are stipulated. In particular ,it is necessary to conclude a contract between the school and the taxpayer who has the permission to operate in the given field. Because the taxpayer will have to prove the number of hours of practical training given in the taxable period, it is necessary to rely on the records kept in the class register or similar records.
Granting corporate scholarships: Apart from the deductions listed in the first and second point of this article, the state is improving conditions for granting corporate scholarships and increasing the limit of the tax deductibility from the current 2,000 to 5,000 CZK a month for high school students, and from 5,000 to 10,000 CZK for college and university students.
Exemption of revenues for the work of pupils and students in practical education: There was no requirement to pay social and health insurance for working students and students in practical education. This was because of the difference between the income tax and insurance laws. For this reason the revenues from the work of pupils and students in practical training are also exempt from income tax from 2014.
From the above it is clear that there will be strong support for the involvement of pupils and students in working practice, which should motivate employers to cooperate with educational institutions and help produce well-prepared graduates they can employ in the future.
Author: Jiří Jandečka