The most significant changes in the area of income taxes, not only for 2017

13.3.2017

ANNOUNCEMENT: On Tuesday, April 4, 2017 Members of Parliament rejected the Senate amendments and re-approved the government’s “tax package”. The law now goes to the President for signature and will enter into force 15 days after its publication in the Collection of Laws.

 

Besides the changes valid from the 1st of January,2017, which are for example:

The Senate of the Czech Republic will discuss the package of tax changes during the fifth meeting that will take place from the 8th of March, 2017.

The law should be valid from the 1st of April, 2017, but according to some of the presented and temporary provisions, some of these changes will be valid for the whole of 2017. According to the provision of the legislation from the 1st of April, 2017, the main issue of the provisions will be their real possible application. Because of the nature of this is problematic, the application will logically move back to 2018.

The main changes predominantly related to the physical person are listed below:

The provision to the exemption of the non-monetary transfer of share in the business corporation has been adjusted. The exemption should correspond with the increased price of the share of a member only through the non-monetary fulfilment in favour of one’s own capital of the business corporation or through the acquisition of the share from another member in case that the monetary transfer occurred within 5 years from time of fulfilment or from the acquisition of the share. Currently, the represented provisions have applied with no reason to cases when it comes to the increased acquired price of the share of a member on the basis of a payment (cases where there is an apparent distortion of the time test). It occurs when increasing the price on the basis of fulfilment in favour of one’s own capital of the business corporation. Other important changes in the tax package are listed below:

Changes in the tax code are part of the tax package. These include:

We will all wait impatiently for the final part of confirmation of the tax package including the President’s signature. We believe that the proposed date for the legislation of the 1st of April, 2017 will be kept.




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