Michal Radvan

Tax Law Components to Provide Incentives for Investment

Although the Czech Republic does not have a territorial tax regime, its participation exemption allows deferral of tax on income of certain foreign subsidiaries. With EU approval, the Czech Republic provides incentives to attract investment. These incentives support manufacturing, job creation, and employee training in the Czech Republic. There is special high withholding tax on dividends, interest, and royalties paid to off-shore tax haven jurisdictions. The Czech Republic is committed to information exchange and the latest standard of information exchange.

The Draft Reform of Land Taxation in the Czech Republic

The article is a reaction to the intention of the Ministry of Finance of the Czech Republic to propose a draft amendment to the Real Estate Tax Act, which could cause a revolution in the assessment of tax base. After outlining the different models for tax base and tax rate assessment of land tax and characterizing the currently valid legal regulation, the article analyses critically the intended draft amendment to the Real Estate Tax Act, which aims to introduce the ad valorem system of land taxation. It is expected that the most effective method will be used in the future, i.e. tax base maps compiled by municipalities as the beneficiaries of real estate tax. The article describes the disadvantages of the ad valorem system of land taxation and highlights the advantages of the intended changes.

Economic Autonomy of the Local Self-Government Units - Local Taxes in the Czech Republic

This chapter deals with economical autonomy of municipalities in the Czech Republic and tries to give the definition of local tax. The chapter is relatively critical, because municipalities in the Czech Republic do not have enough possibilities to get money they need from local taxes. The local taxes (local charges and real estate tax) revenue is very low. So due to their dependence on the state budget it is not possible to talk about economical autonomy of the municipalities. The method to improve existing status is to give to the municipalities more power to decide on local taxes. The example of this solution can be found for example in Slovakia.

Property Taxes Reforms in the Czech Republic

The aim of this article is to show and describe changes in property taxes regulation: new possibilities of municipalities to influence real estate taxes, new exemptions of relatives from inheritance tax and gift tax and tendencies to abolish these taxes at all, tax reductions for new motor vehicles, etc. As we can see, property taxes are slowly loosing their fiscal effects and fiscal functions not only in the Czech Republic and regulation function is becoming more important.

Legal regulation of non-profit subjects in the Czech Republic

Purpose – The purpose of this paper is to examine the theory and regulation of non‐profit subjects in the Czech Republic.Design/methodology/approach – The paper provides an examination of legal theory and its influence on emerging understandings and legislative changes.Findings – It is important that recognition exists then the adequacy or otherwise of the legal controls can begin to be addressed by both policy and law makers.Originality/value – This paper identifies the emerging categories of non‐profit subjects/ entities in the Czech Republic and raises issues about the effectiveness or otherwise of the recognition and control of their property ownership. The paper is one of the first to begin to consider the recent changes to and emergence of non‐profit subjects in the Czech Republic and the consequent need for control.