Czechs Likely To Change Investment Fund Taxation

By Editorial 26 August, 2013

The outgoing Czech Cabinet is expected to propose a legal measure to rectify a mistake in the bill on investment funds taxation, which would allow fund participants to avoid paying taxes on their profits.

The prime minister of the Czech Republic, Jiri Rusnok, told journalists on August 21, 2013 that the mistake would cost the State budget billions of crowns. "We would become a tax paradise. This is a mistake that does not belong there. It was not a part of the original government-sponsored proposal," he said.

If the bill on taxation of investment funds takes effect in its current form, funds would be required to pay a five percent tax on profits while their participants would pay no tax. The bill was changed during government debates and the loophole was not rectified by the Chamber of Deputies.

Tags: Expatriates | Tax | Investment | Investment Funds | Budget | Czech Republic |


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