The government of the Czech Republic intends to fill up the budget of 2013-2015.

19.04.2012 The government of the Czech Republic laid down the aim to fill up the budget in the next three years and defined a number of measures which can promote it.

There are main ideas:

• increase in a standard rate of the VAT to 21 %, and lowered to 15 %. Let's remind that earlier it was supposed to accept a uniform rate of 17,5 % since January 1, 2013;

• increase of a tax on the payments arriving from nonresidents with which there is no agreement on double taxation avoidance from 15 % to 35 %;

• raising of a tax rate on the income from 15 % to 20 % since January 1, 2014;

• tax revision during the real estate transfer from 3 % to 4 %.

These offers still should be approved by the Parliament and the President.

Expert’s opinion

«The government of the Czech Republic seriously went into question of budgetary recharge. Nevertheless, all this time the stability of national economy was supported at the expense of foreign investments. Whether the offers of the Parliament and the President will be accepted or not and as they will be reflected in economy of the Czech Republic, we learn in the near future.

Till present moment company registration in the Czech Republic was really interesting: low authorized capital, geographical proximity of the country, low rate of a tax. Moreover, registration of the company gave the chance to receive the residence permit. And this chance already gives the freedom in moving across Europe.»

On the basis: http://www.vlada.cz/

Andrianova Irina ( the leading lawyer of legal support and banking consulting department of Honest & Bright )