The latest news...

How to fix Corporate tax rate 19% to year 2011 ?

published: 31.03.2010

Everybody already understood, that Corporate tax rate will rise in year 2011 to rate 20% or 21%. Do you want to fix Corporate tax rate 19% for year 2011 ? We know, how to do it, Don´t hesitate to contact us for details.

Duty to settle income tax advances in year 2010

published: 26.02.2010

The decision to cancel obligation of income tax advances settlement, issued by the Ministry of Finance on 23.2.2009 is concerned only advances during the calendar year 2009. This year 2010 are already mandatory income tax advance settlements ín accordance with Income tax law - quarterly or biannually (§ 38a of Act No. 586/1992 Coll. Income tax code)

Maximum social insurance assessment base in year 2010

published: 22.12.2009

  • maximum assessment base for payment of employee social insurance in calendar year 2010 will be 72 multiple of average monthly wage, ie the amount of 1 707 048 CZK. If the amount an employee working for one employer exceeds, the amount by which it does, will not pay social insurance.
  • maximum basis of assessment self-employed (business individual) for premiums for pension insurance and contribution to the state employment policy will be in 2010, as well as for employees, 72 multiple average wages, ie 1 707 048 CZK. Maximum monthly assessment base for self employed advance payment of premiums in 2010 is 94 836 CZK, ie 4-fold the average wage.
  • insurance discount - from 1 January 2010 is discount on social insurance for employers canceled. Last is employers can apply for December 2009, ie until 20 January 2010.

Communication with authorities through internet data boxes

published: 02.11.2009

Since 1.11.2009 came into operation official correspondence deliveries from authorities to companies through internet data boxes. It is an effective way of communication between authority (financial office, business court,...) and company. Since 1.11.2009 have offices duty to distribute announcements and letters by data box only. So it´s very important for company executives and owners to activate databox. Companies still could communicate by post, but communication by internet data box is much more effective. (you could save all sendings to your PC and couldn´t print out on paper)

Major problem ?
We recognize main problem of data boxes: There is no communication in english or another languages available. So foreign owners (executives) must authorize somebody Czech speaking to use databox or to learn operate it in Czech language (in fact, it´s easy, system environment is very user friendly)

Summary of most important changes in VAT-code, effective from JAN 1st, 2010

published: 1.11.2009

  • increase of VAT rates: reduced rate from 9% to 10%; basic VAT rate from 19% to 20%
  • changes to the place of supply rules for services (place of supply is based on where the customer is located or the service is consumed)
  • an additional obligation to make an Electronic Sales Listing report of cross-border services
  • changes of 8th Directive Refunds applications method (refunds of Czech VAT paid by other EU member)

Change in the tax settlement date

published: 15.10.2009

With effect from 1 November 2009 there was changed determination of tax settlement date for payment outgoing from bank account in Czech Republic. Tax will be considered covered on behalf of the Financial office in the day of payment receipt on FO bank account. From January 2010, will be the same method of determining the date of payment also applied to health insurance and social insurance.

New extraordinary depreciation rules

published: 3.4.2009

Fixed tangible assets within the first depreciation group, which includes, for example, IT equipment and certain machinery, a taxpayer can deduct the full amount of the purchasing price as tax depreciation in period 12 months. This rule shortens the depreciation period to one-third in comparison with the standard depreciation period of three years. The acquisition price of fixed tangible assets within the second depreciation group (including, for example, personal cars, office equipment and certain machinery) can be recognized as a deductible expense through tax depreciation over 24 months – instead of the standard depreciation period of five years. In this case, 60 percent of the acquisition price is deducted over the first 12 months and the remaining 40 percent of the acquisition price is claimed over the following 12 months, both on a prorated basis.

© 2010 Business in Czech Republic