Investor Presentaiton
for tax purposes and their tax depreciation corresponds to
the accounting depreciation. The previous approach (i.e. tax
depreciation regulated by ITA) is still applicable to intangible
assets acquired prior 2021. To boost investment activities the
Czech government introduced in 2020 an option to accelerate
the tax depreciation of fixed assets, however, it concerns
only tangible assets acquired from 1 January 2020 to 31
December 2021 which are categorised in the 1st and 2nd
depreciation group.
Tax losses may be carried forward for five years. Losses
may not be carried forward following a substantial change in
the direct ownership of a company, unless it can be shown
that at least 80 percent of the company's revenues derive
from the same activities as those carried out in the period
when the loss arose. A substantial change is the change of
at least 25 percent in the ownership of registered capital or
voting rights, or a change resulting in a person obtaining a
controlling influence in the company. Restrictions also apply
in the case of certain corporate restructuring. A ruling may
be obtained from the tax authority to confirm whether a loss
may be utilized after a substantial change or restructuring.
Tax losses may be also carried back. Taxpayers can claim a
tax loss in two taxable periods preceding taxable period in
which the tax loss was reported. It is possible to carry back
a maximum of CZK 30 million out of the tax loss reported in
any year.
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