17. 1. 2017
17. 1.
2017
Amendments to tax laws at third reading
Amendments to tax laws (Print No. 873) will be subject to a third reading in the Chamber of Deputies, likely to occur after 10 January. The amendments should become effective on 1 April 2017. Discussions within the third reading will be quite complicated, as a large number of motions to alter the amendments were filed during the second reading, including motions from coalition deputies and the minister of finance. We draw attention to the major motions subject to vote.
- Restriction of expenses claimed as a percentage of income: the budget committee proposes to reduce the maximum amount of expenses that can thus be claimed by self-employed persons. To compensate for this restriction, the committee proposes to cancel the restriction to apply tax credits for one’s spouse and for dependent children.
- Tax determined as a lump sum: Minister of Finance Babiš proposes to extend the application of tax assessed as a lump sum. It would be possible to use this concept in cases of concurrence of self-employment and employment as well as where self-employed persons employ staff. Currently, the concept cannot be applied in these cases. Hence, taxpayers make use of it only sporadically. In addition, such persons would not be subject to electronic reporting of sales (ERS).
- Binding rulings regarding profits allocated to a permanent establishment of a foreign entity: the budget committee proposes to extend the possibility to use binding rulings to non-residents having permanent establishments in the CR.
- Refund of VAT to tourists: the budget committee proposes to reduce the limit from CZK 2 000 to CZK 1 500.
- Non-application of ERS to e-shops and other exceptions: with respect to Minister Babiš’s motion, the budget committee does not give any recommendation. Deputies will also discuss other similar motions, for example one filed by KDU-ČSL Deputy Klašek (a motion not to apply ERS to farmers’ markets and minor subsidiary activities).
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