Czech Republic: Withholding tax on dividends to be abolished from 1 January 2014
The Government of the Czech Republic has submitted, to the Lower Chamber of the Parliament, a change of effective date for certain tax amendments, including the abolition of withholding tax on dividends from Czech securities.
This abolition was already approved, for physical and legal persons resident in the EU, Iceland, Norway and Switzerland, with effective date 1 January 2015.
If the submitted amendment is approved, the law that specifies 0% withholding tax on Czech dividends for physical and legal persons as described above would become effective on 1 January 2014 and be applicable to dividends paid in 2015.
The new rate would be applicable on dividends paid out from profits generated after the effective date of the change, which in practice means profits for fiscal year 2014, out of which the dividends will be paid in 2015.
The practical impact is therefore that 0% withholding tax would be applied on dividends paid out in 2015 and thereafter.
We continue to monitor the situation and will provide information as soon as further details or official confirmation become available.
| 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. |