The Senate of Czech Republic has approved a special law measure on October 10, 2013 which includes a long discussed Income Tax Law amendment. To be enacted it must be accepted by a new Chamber of Deputies on its first session.
Under the new measures, expenditure on R&D will be eligible for a 210% and also the types of costs qualifying for R&D credit will be extended to more categories. Other measures contain a provision that the income of individuals from the securities sale will be relief if the holding period exceeds 3 years instead of the current 6 months (with exceptions).
Corporate income tax stays at 5% and withholding tax on dividends from investment funds remains at 15% for investment funds, contrary to previous drafts which proposed a complete overhaul of the investment funds taxation. The broad extension of the dividend withholding tax relief that was previously negotiated was not approved and is therefore not contained in the new measures.
