Taxation of Employee Benefits
The General Financial Directorate (GFD) has issued methodological information on the taxation of employee benefits, as modified by the consolidation package effective from January 1, 2024.
Mazars Tax View 3/2024
We would like to briefly introduce the content of the latest edition of our tax newsletter.
In the introductory article, we have selected some interesting points from the methodological information of the General Financial Directorate regarding changes in the taxation of employee benefits from January of this year. The second article focuses on changes in the taxation of employee share and option plans and the discrepancy in tax and related contribution legislation. In the next article, you will learn how the Long-Term Investment Product works as a new tax supported alternative to existing old age savings products.
Furthermore, you can read our comments on selected points from the methodological information issued by the General Financial Directorate in January on changes in VAT rates to eliminate interpretative uncertainties brought by the amendment to the Value Added Tax Act. In the next article, we have summarized a brief overview of changes to the Intrastat reporting.
In December of last year, the Czech Republic completed the implementation of the EU directive aimed at ensuring a global minimum level of taxation for multinational groups of companies and large domestic groups within the EU and introduced two completely new taxes. In the final article, we will introduce you to this very complex issue, which we will also address in one of our future newsletter editions.
We believe that our articles will be stimulating and useful for you, and we wish you enjoyable reading.
Taxation of Employee Stock and Option Plans
On 1 January 2024, an amendment to the Income Tax Act came into effect, significantly adjusting taxable moment of income from employee stock and option plans. The amendment brings a variety of interpretative and practical uncertainties, among which stands out the different treatment in the tax area comparing to legislative regulation of social and health insurance contributions.
Long-Term Investment Product
As part of the amendment to the law on investment on capital market and the associated amendment to the income tax law, a new product for saving for old age, a long-term investment product (hereinafter as "LTIP"), has been introduced. It is intended to function as an alternative to old age saving products that are already tax supported, such as products in the third pension pillar (pension insurance...
Interpretation of the Changes in VAT Rates
The General Financial Directorate (hereinafter as ‚GFD‘) issued the expected methodological information on VAT rates changes from 1 January 2024 (hereinafter as ‚the Information’) on 12 January 2024. The aim of the Information was to eliminate interpretive ambiguities, even though a number of areas remain unclarified. Our comments on selected topics are mentioned below.
Changes to the Intrastat Reporting
As of 1 January 2024, there have been several changes in the reporting of movements of goods between EU Member States and the Czech Republic. We provide a brief overview of these changes.
Introduction to Top-Up Taxes
In December of last year, the Czech Republic completed the implementation of the EU directive aimed at ensuring a global minimum level of taxation for multinational groups of companies and large domestic groups within the EU. It essentially introduced new taxes on profits, namely top-up taxes, and thereby new tax obligations for selected taxpayers.
Forvis Mazars is the 2023 Tax Firm of the Year
Prague, 8 February 2024 – The winners have been announced for the 2023 “SLUTO TAX & ACCOUNTING Firm of the Year” awards. The professional jury's votes decided that Forvis Mazars succeeded in one of the main categories and is the 2023 Tax Firm of the Year. Pavel Klein, the Tax Leading Partner, accepted the award on behalf of Forvis Mazars during the awards ceremony on 7 February in the Visionary spaces...
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