The following news will be introduced from 2012 in the area of corporate income tax:
- The remuneration of the members of the statutory bodies is now a tax deductible expenditure (it concerns the members of the Board of Directors of joint stock companies and the Board of Directors of the cooperatives).
- Tax depreciation of receivables cannot now be performed on statute-barred receivables where tax provisions cannot be created. Similarly, costs arising from the newly established criminal liability of companies will be tax non-deductible.
- The possibility to take advantage of tax losses in the case of cross-border transformations is being introduced in relation to the amendment of the Transformation Act. The deadlines for submitting a tax return for a cross-border split and for cases where the decisive transformation date follows the date of decision of the general meeting concerning the approval of the transformation are amended.
- The tax obligations for investment companies and investment and mutual funds are amended in connection with the amendment of the Collective Investment Act.
We further draw your attention to the Decree of the General Financial Directorate D-6 on application of the Income Tax Act which replaced the previous Decree of the Ministry of Finance D-300 and which will already be used for the taxable periods that started in 2011. The changes to D-300 concern, for example, the tax implications of terminating rent contracts in cases of technical appreciation performed by the lessee, determining the term ‘part of an asset’ for the depreciation purposes, low capitalisation rules or determining dividend income for the purposes of tax exemption.
Selected taxpayers will be subject to a change to the locally competent tax administrator in the course of 2012 and will be reporting to the newly established Specialised Tax Office (excluding real estate tax).
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Source: PwC Česká republika, s.r.o.; Tax, Legal and Business News, January 2012