Amendment to the Income Tax Act (Czech Republic)

Amendment to the Income Tax Act (Czech Republic)

 

The Ministry of Finance submitted for comment procedure a motion to amend the Income Tax Act. The main proposed changes for physical person’s income tax are as follows:

 

• For 2015, no change in the tax base or rates is proposed. This means that super-gross wages should still be applied as well as the solidarity tax increase.
• A new tax rebate for placing a child in a pre-school care facility for children should be implemented.
• Tax rebate for the second and additional child is suggested to be increased to CZK 1,200 a year.
• The basic rebate would again be available to working pensioners.
• In the case of expense flat-rate tax for gainfully self-employed persons of 60%, the expenses are suggested to be limited to CZK 1,200 thousand.

The previously enacted exemption for shares in profit of physical persons will not be implemented.

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