Investor Presentaiton
The maximum annual assessment base for so-
cial security premiums in 2016 is CZK 1,296,288.
There is no cap on health insurance premiums.
Social security and health insurance contribu-
tions must be paid on a monthly basis. Social
security contributions must be paid until the
aggregate of the monthly assessment base ex-
ceeds the maximum annual assessment base.
Upon achieving this limit, the employer should
stop paying social security contributions. The
assessment base is very similar to the tax base.
Foreign persons under local employment
contracts are subject to Czech social security.
Foreign persons employed by a non-Czech em-
ployer, with a social security treaty between
the Czech Republic and the country of the
employer in place, are subject to Czech social
security unless, under the terms of the treaty,
they can remain in the social security system of
the home state.
The authorities take the view that expatriate
employees of EU employers are subject to
Czech social security based on EU social secu-
rity rules. In practice, this means that expatri-
ates are liable to Czech contributions unless
they remain in their home state system under
EU rules.
Tax on the acquisition of
immovable property
Tax liability arises upon the registry of the
transfer of the ownership in the land register.
The tax is payable by the transferor (seller), al-
though the parties can agree that it will be paid
by the acquirer².
The tax rate is four percent of the tax base.
The tax base is the higher of the agreed price
(including VAT if applicable) and of a refer-
ence value. The reference value is calculated
by tax authorities based on prices for similar
transactions. If the tax authorities cannot cal-
culate a reference value, the tax base will be
the higher of the agreed price and 75 percent of
the value assessed by an expert. If real estate
is transferred as part of an enterprise, the tax
base will be based on an expert valuation.
The taxpayer must submit a tax return by the
end of the third month following the month
in which the transfer was registered. The tax
is due by the same deadline. Tax declared in
the return is in some cases considered a pre-
payment and is subject to review by the tax
authorities.
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2 According to a proposed amendment, which should become
effective as of 1 April 2016, the acquirer of the real estate should
always be the tax payer.View entire presentation