Pavel Mertlik, the new deputy prime minister responsible for the economy, mentioned several changes to tax legislation envisaged by the new cabinet. He indicated that the rapid acceleration of tax depreciation periods will be one of the new cabinet(s first tasks. Also, a reduction in the corporate tax rate from the current 35% to 20% is being considered as well as the idea of a flat tax for small businesses.
On the other hand, the new Government plans to raise social security contributions by 1.5 - 2%. This increase would result in an extra average monthly burden of Kc 220 - 280 per employee. An increase in the fuel excise tax is also envisaged. Ivo Svoboda, the new Finance Minister, also intends to prevent banks from creating bad debts provisions with regard to loans provided to municipalities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information on the above, please contact Mr Richard Fletcher by telephone on +420 2 2440 1300 or E-mail directly to Click Contact Link