Österreichische Volksbanken-Aktiengesellschaft ... - Volksbank AG

3. other persons.
The succession of Notes to direct relatives and spouses of the deceased is fully exempt from
inheritance tax.
The succession of Notes is exempt from inheritance tax up to the amount of Notes CZK 60,000
inherited by other relatives and CZK 20,000 inherited by other persons.
The rates of tax vary depending on the value of the inheritance and the above categories. The
rates for inheritance tax are:
Value
1 (exempt) 2
Category
3
up to 1 MCZK 1.5% 3.5%
excess to 2 MCZK 1.75% 4.5%
excess to 5 MCZK 2% 6%
excess to 7 MCZK 2.5% 7.5%
excess to 10 MCZK 3% 9%
excess to 20 MCZK 3.5% 10.5%
excess to 30 MCZK 4% 12.5%
excess to 40 MCZK 4.5% 15%
excess to 50 MCZK 5.25% 17.5%
over 50 MCZK 6% 20%
Czech gift tax
Pursuant to the Czech Gift, Inheritance and Real Estate Transfer Tax Act, gift tax is charged on
the gratuitous acquisition of property (including the donation of Notes).
There are three categories of taxpayer for gift tax, namely:
1. direct relatives and spouses of the deceased/donor
2. other relatives
3. other persons.
The donation of Notes is exempt from gift tax up to the amount of Notes CZK 1,000,000 donated
to direct relatives and spouses of the donor, CZK 60,000 donated to other relatives and
CZK 20,000 donated to other persons.
The taxpayer is normally the donee, but if the donor is a Czech resident and the donee is not, the
tax is payable by the donor.
The rates of tax vary depending on the value of the gift and the above categories. The rates for
gift tax are:
Value
Category
1 2 3
up to 1 MCZK 1% 3% 7%
excess to 2 MCZK 1.3% 3.5% 9%
excess to 5 MCZK 1.5% 4% 12%
excess to 7 MCZK 1.7% 5% 15%
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