Investor Presentaiton
- capital gains;
- any other income not in the
above categories.
There are numerous exemptions, the most im-
portant of which are the exemptions from tax
on gains from the sale of shares and securities.
Gains on the sale of securities acquired
before 31 December 2013 are exempt if the
securities have been held for more than six
months and do not represent more than
five percent of registered capital and voting
rights for 24 months preceding the sale.
Gains on the sale of securities acquired
before 31 December 2013 representing
more than five percent of registered
capital and voting rights and any securities
acquired on or after 1 January 2014 are
exempt if they were held for three years.
Generally, no tax is payable if the income
from the sale of securities does not
exceed CZK 100,000 in a tax year.
Gains on the sale of shares in a limited
liability company are exempt if the
shares were held for five years.
· Gains from the sale of non-business
real estate are exempt if the property
was held by the taxpayer for at least five
years prior to the sale. Gains from the
sale of a dwelling are also exempt if the
dwelling was used as the taxpayer's main
residence for at least two years. If it was
used for less than two years, the exemption
applies if the gains are to be used for
the taxpayer's housing in the future.
From 2015, exempt income exceeding CZK 5
million in a given tax year must be declared to
the tax authorities.
The income of individuals is subject to a flat
tax rate of 15 percent. An additional seven
percent (a "solidarity tax increase") is applied
on income (either the gross salary or the self-
employment tax base) in excess of the maxi-
mum annual assessment base for social secu-
rity contributions (CZK 1,296,288 in 2016). The
15% percent flat tax on employment income is
calculated on the basis of the super-gross sal-
ary, which is the gross salary increased by so-
cial security and health insurance contributions
payable by the employer. Employment income
of individuals who are not subject to Czech so-
cial security that is taxable in the Czech Repub-
lic is increased by the amount of an employ-
er's deemed contributions regardless of the
amount of social security and health insurance
contributions actually paid. Thus, the effective
tax rate is not 15 percent (or 22 percent for per-
59View entire presentation