Tax-exempted incomes above 5 million subject to notification duty
7.01.2016Company: PricewaterhouseCoopers Česká republika, s.r.o.
In 2015, for the first time, natural persons are obliged to notify the Tax Office about any tax-exempted income that is also higher than CZK 5 million.
If the notification duty is not fulfilled, there is a risk of a fairly big fine, where the highest one amounts to 15% of the exempted income, i.e. the exempted income is eventually taxed.
The most frequent income types of natural persons that could be subject to notification:
• sale of a house, flat, land abroad
• sale of a share in a company
• sale of a share in a co-operative
• sale of securities
• sale of antiquities, valuables
• inheritances, gifts
• and others
There is no notification duty in the case of income that the tax administrator can determine from a registry or evidence, e.g. in the Cadastral Registry of the Czech Republic, i.e. income registered there from the sale of a house/flat/land.
To announce this exempted income, a form issued for this purpose can be used. The notification must be filed to the local competent tax office within the deadline for tax return filing. The notification must be done even if there is no obligation to file a tax return.
To get more informations, please contact:
Petra Bobková, +420 251 152 515
