Investor Presentaiton
the income of the ultimate beneficial owner of
the investment via the transparent entity.
Tax administration
The administration of tax is mainly governed
by the Tax Code with specific procedures pro-
vided by other Acts.
All Czech resident companies, limited partner-
ships, and permanent establishments of non-
resident companies must file tax returns. This
does not apply to general partnerships, where
the partners declare their share of partnership
profits.
All individuals with an annual taxable income
exceeding CZK 15,000 must file tax returns
unless the income is tax exempt or subject to
withholding tax. A return must also be filed by
any individual who is liable to the solidarity tax.
This means that, in general, low-paid employ-
ees of Czech companies or branches of foreign
entities are not required to file returns unless
they have other taxable income.
Anyone who claims a tax loss must also file
a return.
The deadline for the submission of a tax return
is three months from the end of the taxable
period. For all taxpayers, with the exception of
legal entities that have adopted a non-calendar
year-end, the taxable period is the calendar
year, and the tax return deadline is therefore
1 April. This deadline is extended by a further
three months if:
the taxpayer is subject to a statutory audit;
― the taxpayer engages a registered
tax advisor to submit the tax
return on its behalf.
Except for withholding tax, income tax is col-
lected during the year by a system of prepay-
ments based on the previous year's liability.
The final deadline for settling the liability is the
Isame as for the submission of the return. The
tax is treated as paid when it is received by the
tax authority.
The tax authority has the power to carry out
tax inspections to establish or examine the tax
base or any other circumstances decisive for
the correct determination of the tax liability.
Tax may not be assessed or additionally as-
sessed after three years have elapsed from
the deadline for filing the ordinary tax return.
However, the deadline for the assessment of
additional tax may be extended to a maximum
of 10 years under certain circumstances, such
as the filing of an additional tax return or the
occurrence of a tax audit. In the event of some
tax-related crimes, additional tax may be as-
sessed regardless of the lapse of the period for
tax assessment.
66View entire presentation