It has been reported that the government submitted an amendment to the Income Tax Law to the parliament which presents corporate and individual income tax changes. The bill must be approved by both chambers of the parliament and signed into law by the president to turn it into law. If approved, the bill would introduce the following main changes that will effect from 1st January 2016:
- In accordance with the participation exemption regime, dividends received by a parent company in the Czech Republic would not be discharged from corporate income tax and such dividends could be treated as deductible by the subsidiary.
- At present, the tax credit for the second child is CZK 15,804 and it would be raised to CZK 17,004 and the tax credit for the third and every following child would be increased to CZK 20,604 (at present, CZK 17,004).
