The Czech Republic government has submitted its long-discussed proposals on April, 2013 to “re-codify” the tax laws to the Chamber of Deputies with a proposed effective date of January 1, 2014. The main proposals are summarized below:
Dividends, capital gains on sales of stock
For individuals and cooperate entities there is a proposed tax exemption for dividends paid between Czech residents and residents of the EU (or residents of Switzerland, Norway, and Iceland).
The proposed measures also include an extension of the holding period required to obtain an exemption of tax on a capital gain on the disposal of securities. The required holding period is being increased from six months to three years.
R&D proposals
Companies conducting research and development (R&D) will be permitted to contain a broader range of expenses in the R&D account under the proposed measures. Expenses paid to major research institutions and public universities could also be included under their R&D expenditure.
