Import surcharge

Under Directive No. 82/1998 Coll., the import surcharge reduced from 5% to 3% with effect from 1 April 1998. The reduction follows the resolution of the World Trade Organisation under which no import surcharge should be applied after 1 October 1998.

Taxation of the yields from sale of securities

The Ministry of Finance issued a decree stipulating a uniform approach to the taxation of yields from sale of securities.

The decree unifies the methods of settlement of liabilities against the National Property Fund and taxation of owners' contributions into business entities and cooperatives for the purpose of income tax base determination.

The decree was published in The Financial Newsletter No. 3/1998 under No. 13.

Tangible assets depreciation

The Ministry of Finance issued a decree unifying approaches to the application of Section 26 (2) and Section 33 of the Income Tax Act No. 286/1992 Coll., within the wording of the latest amendments, related to tangible assets depreciation.

Amongst others, the decree defines the terms "reconstruction" and "modernisation" for the purposes of the income tax act.

The decree was published in The Financial Newsletter No. 3/1998 under No. 15.

Ozone layer protection

The Protection of the Ozone Layer Act stipulates obligations of legal entities and individuals using substances damaging to the ozone layer and products made from these substances.

In order to reduce the dangerous impact of these substances, the act lays down charges to be paid for their usage.

The act also amends the Trade Licensing Act and some trade licensing activities become conditional on the possession of certificate of qualification for the usage of these substances.

The act was published in the Collection of laws under No. 76/1998 Coll. with effect from 1 April 1998.

Act on Construction Materials

Act No. 90/1998 Coll. on Construction Materials amends the conditions under which it is possible to bring to the market new construction materials for permanent installation within a construction/building.

The Act also determines the procedures and methods of testing the appropriateness of construction materials to be used and it also lays down the conditions for authorisation and certification of materials.

The act enters into effect from 1 October 1998.

Levies related to the failure to comply with Section 114 of the Employment Act No. 387/1996 Coll. regarding the mandatory quotas on employment of disabled people

In the Financial Newsletter No. 3/1998, the Ministry of Finance published decree No. 16 aimed at a uniform approach to reviewing, and including, levies into the income tax base.

Under the decree, the levy is not regarded as a sanction. Therefore, the levy is considered to be an expense incurred to generate, assure and maintain the taxable income.

The information in this newsletter is correct to the best of our knowledge and belief at the time of going to press. Specific advice should be sought, however, before investment and other decisions are made.

For further information contact Mr Frank Walsh on +421 7 5340 545 Email directly on Click Contact Link