Investor Presentaiton
Taxation of individuals
Individuals are subject to income tax, social security, health
insurance, and taxes on land and buildings.
The taxation of individuals primarily depends on their
residence status. Residents of the Czech Republic are subject
to tax on their worldwide income, whereas non-residents are
subject to tax on Czech-source income only.
Czech tax residence is defined as either:
•
having a permanent home in the Czech Republic;
spending 183 days or more in the Czech Republic during
the tax year (the year to 31 December).
Personal income tax is charged on:
•
employment income;
• business income;
investment income;
There are numerous exemptions, the most important of
which are the exemptions from tax on gains from the sale of
shares and securities.
The capital gains from the sale of shares undertaken by
an individual, if the shares are not part of the individual's
business property, shall be tax exempt if:
•
•
the overall gross income from sale of shares does not
exceed CZK 100.000 annually, or
the shares had been owned by the individual for a
minimum period of 3 years (i.e., the period between the
acquisition date and the date of the sale of shares).
It should be noted that the above tax exemption is applicable
on the sale of shares in public joint stock companies (in
Czech akciová společnost) only.
•
rental income;
•
capital gains;
.
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any other income not in the above categories.View entire presentation