It is reported that the Czech Minister of Finance has abandoned plans to unify by 2015 the tax collection in respect of individual income tax and public insurance contributions. Some tax measures are however to be introduced to rationalize the tax system and help certain groups within society.
Proposed amendments to the taxation system would however include an adjustment to the way in which investment funds are taxed; an increase in the tax credits given in respect of children of the taxpayer; a revival of the working pensioners’ tax credit; a restriction on the deduction of lump sum expenses by taxpayers who are self employed; and the abolition of the need for tax returns to be filed in respect of employees who are liable to the solidarity tax surcharge. It is expected that a further round of tax reforms in 2016 will lead to the complete removal of the solidarity tax surcharge.
