Czech Republic: Proposed increase of withholding tax

Tax | Czech Republic

Reference

Code

T12027

Service level

CBL

Last Updated

19.07.2012

This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.

The Lower House of the Czech Parliament has approved a proposed increase in the rate of withholding tax on income from Czech securities (both bonds and equities) from 15% to 35%.

The increased rate, if finally approved, may become effective as of 1 January 2013 and would be applicable to:

Non-EU/EEA residents from jurisdictions that do not have a Double Taxation Treaty in force with the Czech Republic (mainly tax haven countries); and
Undisclosed holders.

The changes are still to be confirmed by the Senate and signed by the President before coming into force.

We will inform customers as soon as official confirmation becomes available.