ey-global-tax-policy-outlook-for-2015

Czech Republic
2.5 Fiscal stimulus in 2015
2.6 Political landscape
In the Czech Republic, tax policy is governed centrally by the
Cabinet, with the Ministry of Finance having the key role and
responsibilities in this area. The Ministry drafts the majority of
tax laws and initiates the legislative process.
become rather smooth and quick.
tax reforms to be passed, 2014 has seen a range of measures
passed, with others still under negotiation.
2.7 Current tax policy and tax administration
leaders
Tax policy leaders (interim government — will likely be
• Bohuslav Sobotka, Prime Minister
• Andrej Babis, Minister of Finance
•
and Customs
Tax administration leader
•
2.8 Key tax policy changes in 2014
• Extensive corporate and personal income tax reform was
Code and the Act on Corporations (primarily new civil law
law features, e.g., trusts).
•
of qualifying expenses, which is effectively a double
deduction of an individual expense, and 110% deduction
applicable to year-on-year increases).
• Further, the abolition of inheritance and gift taxes and their
integration under the income tax brought a number of
changes in the area of taxation of non-monetary income and
related interpretation issues.
• New transfer pricing reporting (an overview of related-party
transactions) was introduced for large taxpayers — on a
voluntary basis in 2014 — but will become mandatory
as of 2015 for companies meeting at least one of the
following criteria: (i) their assets exceed CZK40 mil, (ii) their
net revenues exceed CZK80 mil and (iii) they have over
50 employees.
• The six-month test for the exemption of income earned by
an individual from the sale of securities was prolonged to a
three-year term.
•
• The new Real Estate Tax and the new Real Estate Transfer
Tax Act became effective as of 2014.
2.9 Country position on OECD Base Erosion
and Prot Shifting (BEPS) Action Plan
• The contemplated tax law amendments are generally aligned
Plan is not the key driver for the amendments).
• There are currently no formal public statements,
consultations, legislation or working group(s) in relation
to BEPS.
• At this stage, the Ministry of Finance has indicated its
intention to focus primarily on transfer pricing and related
BEPS Action items are of greatest interest.
2.10 Pending tax proposals
• The Investment Incentives Act amendment is pending,
which would have an impact on the tax holidays relief
(reduction of the percentage from the qualifying new
investment is expected).
• Additional amendments to the VAT Act and real estate tax
are being proposed. Neither should have material impact.
2.11 Consultations opened/closed
•
for public consultation. Private individual taxpayers would be
required to prove the origin of their private assets (whether
acquired from taxed income). Additional income tax and
heavy penalties would be assessed if the origin is not proved.
elements as the tax authorities would be effectively able to
assess tax from income earned in statute-barred tax periods.
Further development is expected in this area.
The outlook for global tax policy in 2015 |
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