Real Estate Acquisition 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

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