Document 311 - Amendment to the Income Taxes Act

Scope: Sections 21aa–25; pages 1–4.

The amendment modifies the government’s amendment to the corporate income tax law regarding the extraordinary sectoral tax. The rate of this tax is reduced from 50% to 39.5%, and at the same time, the option to deduct it as a tax-deductible expense is eliminated. The net burden on taxpayers is expected to remain similar, but the measure is intended to prevent a reduction in the shared revenues of municipalities and regions from the regular income tax.

Scope: § 17c–§ 20ba; page 1.

The amendment extends the extraordinary sectoral tax on refining to foreign producers of mineral fuels imported into the Czech Republic. The tax for a foreign legal entity is paid by the Czech importer, and the tax base is determined based on the proportion of fuels imported into the Czech Republic. The proposal aims to eliminate the difference in taxation between domestic and foreign producers and specifies the relevant activity using the CZ-NACE code 19.2.