Ministry of Finance Instructions

The following instructions were published in Financní zpravodaj No. 6/1998 and Cenovy vestnik No. 8/1998.

Decree D - 181

Decree D-181 deals with the application of VAT to the rent and sub-rent of real estate. The rent of real estate to a VAT payer is either exempt from VAT or subject to 5% VAT. However, if the real estate were not part of the taxpayer(s business property, the rent of such real estate would fall outside the scope of the VAT Act. The sub-rent of real estate is always subject to 5% VAT.

The decree also deals with the application of VAT to costs of repair, maintenance and technical appreciation of real estate.

Decree D - 182

Decree D-182 deals with the application of VAT to rehabilitation services.

The decree replaces decree D-42.

Instruction on the application of personal income tax deduction for interest paid on mortgage loans

The instruction deals with the practical application of a personal income tax deduction in respect of interest paid on mortgage and similar loans. The instruction contains a form which should be used to confirm mortgage loan and interest paid on the loan to be confirmed by the respective bank and an amendment to the personal income taxpayer(s declaration.

Instruction on the application of the Double Taxation Treaty between the Czech Republic and Vietnam

The instruction deals with the practical application of the reduced withholding tax rates or tax exemption applied on dividend, interest and royalty payments in accordance with the Treaty.

Based on Vietnamese domestic legislation, interest payments made from Vietnam to the Czech Republic are, at present, temporarily not subject to taxation in Vietnam.

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