Christmas Season
6.12.2011Company: Amcham
Our offices have already become busy. We have to clear out the storage rooms and adorn the shop windows with new decorations. Maybe it is too soon for a Christmas tree but something like “Winter Is Coming” suits well. We are preparing some pre-Christmas events. Further changes to the tax legislation are definitely worth a seminar or a tea at five.
The Parliament has already started to give us some Christmas presents too as the amendment to the Act on income tax has been smoothly working its way through the legislative procedure. Disguised as an integrated revenue agency, it introduces a complex and long list of changes. Lunch vouchers followed by free rail passes play a “key role”, of course. It will be a tough battle but we believe that at least the lunch vouchers will survive!
The changes will apply to some of the “less important” but quite interesting rules. From now on, your income from the sale of the property will always be subject to the tax unless it had been your permanent residence for at least 2 years. So far you could have avoided this tax by using the income to buy another property.
Your income from the sale of shares, unit certificates and other securities will be subject to the tax unless you hold them for at least 5 years. So the six-month test has been removed. Good bye, money market funds.
As to the investment and share funds, our lawmakers have come up with a perpetuum mobile – having cancelled the exemption from the tax, they manage to lower the effective tax rates. Find out more about this issue and many others in our Newsletter.
We are looking forward to Christmas. And hope you are too!
Daniel Kovačovič, TAX Consultant
Mobil: +420 739 182 283
E-mail: daniel.kovacovic@rsm-tacoma.cz