Tereza Gebauer

Tax 

Finance Leases and Real Estate Acquisition Tax

The acquisition of ownership title to real estate subject to a finance lease by its user is, according to the Ordinance on Real Estate Acquisition Tax, exempt from this tax. However, the Ordinance does not define finance leases in any way and, in this regard, the Income Taxes Act is referred to. As the definition had changed over time (namely between 2014 and 2015), it was not fully clear what wording is effective in assessing the exemption. 

24. 5. 2019
Tax 

On Whose Part Does Gratuitous Income Arise When the Lease and Sub-Lease Agreements are Terminated at the Same Time?

In cases in which the property owner enables the lessee to perform technical improvement on the property and to subsequently depreciate the improvement made, while no compensation is provided upon the lease agreement’s termination, the property owner generates gratuitous income. The property owner is obliged to tax such income as part of his/her tax base. Pursuant to the amendment to the relevant legislation effective from 1 July 2017 it was possible to perform and depreciate such technical improvements both for lessees and any authorised property users (such as sub-lessees). However, the legislation did not provide any guidance on how to treat technical improvement upon the termination of sub-lease agreements. 

6. 3. 2019
Tax 

Use of the guide value in determining the real estate acquisition tax base

For the purpose of determining the real estate acquisition tax base, a taxpayer has the possibility to choose either the price determined by an expert valuation or the so-called guide value (“směrná hodnota”) as the comparative tax value. The Financial Administration has so far argued that the taxpayer can no longer change the selected option once the tax return is submitted, for example by filing an additional tax return. However, the Municipal Court in Prague has now expressed the view that the taxpayer may change its decision until the tax is assessed. 

13. 2. 2019
Tax 

Ruling: Correction of Accounting Errors and Tax Base Implications

This article summarises the key information arising from judgment 3 Afs 28/2017 – 43 which was issued in October 2018, addressing two areas as follows: corrections in accounting records including implications for a corporate income tax return (“CITR”) and insurance benefits in relation to an assigned receivable. A cassation complaint of the Appellate Financial Directorate (“AFD”) against Československá obchodní banka (the “Company”) has been rejected. 

22. 11. 2018
Tax 

Tax changes in the taxation of investment funds: New corporate rate of 19 %

In the June issue of dReport, we informed you about the amendment included in the planned change in the taxation of basic investment funds. On 19 July 2018, an act was adopted (with effect from 1 January 2019) which includes a narrowing of the definition of a basic investment fund, and removes from the definition those funds whose shares are admitted to trading only on the European regulated market and do not fulfil the other conditions enumerated by law. These funds will now be subject to the standard corporate rate of 19% and not the current rate of 5%. 

26. 9. 2018
Tax 

Currently on ATAD implementation

The proposed amendment to the Income Taxes Act (included in the government package of tax law amendments), whose primary objective is to implement the EU Anti Tax Avoidance Directive – ATAD from 1 January 2019, is awaiting debate in the Chamber of Deputies in the first reading. A question mark is therefore beginning to appear regarding whether or not the proposed amendment will be able to go through the whole legislative process by the year end. 

25. 9. 2018