Amendments to the income tax law, signed by the president and set to be effective on the 15th day of its publication, includes provisions with respect to depreciation and withholding tax.
In general, the measures apply to the 2018 tax period.
The new depreciation rules will apply to fixed assets and technical improvements put into use after the amendment’s effective date. From 2018, intangible assets will be depreciated on a straight-line basis using their net book values.
The new withholding tax rules affect non-profit entities and unit owners associations as well as financial institutions paying interest income to these entities. The amendment extends the scope of the 19% withholding tax to interest on deposits. This new measure imposes additional requirements on banks and savings and credit cooperatives.
Read a May 2017 report prepared by the KPMG member firm in the Czech Republic: Tax and Legal Update
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