"Czech Republic Approves Austerity Measures and Amends VAT Laws"
Czech Republic Approves Austerity Measures and Amends VAT Laws (Sunnyvale, CA)- The Czech Republic government has opted for austerity measures and amendments to individual income tax, withholding tax, excise tax and VAT provisions. Details of the major VAT changes effective from January 1, 2013 are as follows: The standard VAT rate has been increased to 21% and the reduced VAT rate to 15%. The scope for VAT has been widened, making more customers liable to pay in future. The VAT exemption for insurance and re-insurance has been amended. The electronic format rules concerning tax documents have been changed. VAT returns will have to be filed electronically from 2014. Calendar month will be the primary period for VAT payers, however, some taxpayers can also use the quarterly period. The time period for exemption from VAT, for transfer of real estate has been increased from three years to five years. There is a possibility to receive a final clarification from the tax authorities on whether a supply of scrap metal or waste will or will not be subjected to local reverse charges. The other important changes include: In case where a tax haven jurisdiction is involved, withholding tax on passive income increased to 35% from 15% (for dividends, interest, royalties). On income more than 48 times the average wage in 2013 to 2015, there is a 7% “solidarity” increase in individual income tax. Concerning excise tax provisions, there are new restrictions on the treatment of “green diesel” under preferential tax treatment in 2013. In 2014 the tax will be abolished. The real estate transfer tax rate has been increased from 3% to 4%. The limit on premiums of health insurance has been abolished for 2013-2015. Basic individual income tax allowance for pensioners has been abolished in 2013–2015. For more information on this topic email email@example.com Get the latest press releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts. Know more on: international accounting tax for expats international business expansion