Tax and legal news

Increased deduction limits for pension and life insurance will become effective starting with the 2017 tax period. The current maximum amount of CZK 12,000 per year will be increased to CZK 24,000.

According to the information published on the web pages of the Ministry of Finance, tax payers who have only income from dependent activities in 2016 can use a new simplified personal income tax return form.

Tax payers, namely private individuals, will have the opportunity to obtain data needed for the payment of real estate tax for the 2017 tax period via e-mail instead of postal orders, which was commonly used so far.

As we informed you in spring, an extensive amendment to certain tax laws effective from 2017 is being prepared, namely changes to income tax, value added tax and the Tax Code are expected. The amendment is currently being discussed in the Chamber of Deputies of Parliament, and it is expected that it will be approved at the end of this year.

In November 2016, a regular meeting of L & N members was held. This time, the meeting was held in Prague, and fifteen representatives from nine countries came.

Recently, the General Financial Directorate has published two new documents with an interpretation of some VAT issues related to real estate and the reverse charge mechanism for electronic communication services. The documents can be found on the tax administration's web pages.