At its last session on 25 September, the Government passed legal measures that would be put forward to the Senate. The legal measures provide for the implementation of the New Civil Code. Previous attempts of implementation of such Bills have failed as the Senate primarily did not agree on sounding of the Bills proposed by the previous government.

The first legal measure regulates the system of taxation with regards to the taxation of dividends. The Government reflected comments of the Senate that the previous version of the Bill, lowering the level of dividend revenue tax, would mean a loss of financial income for the state budget of about 4 bln CZK. The Bill therefore keeps dividend revenue tax levels of 15 per cent for a natural person and 19 per cent for o legal person. With regards to the taxation of dividends, the Government proposed postponing of tax exemption for natural persons’ dividends revenue to January 2015. The previous government expected that natural persons should not be obliged to pay income tax stemming from dividend revenues.

Further, the second legal measure reflects the Senate’s refusal of the Bill on Public Beneficial Corporation. The measure stipulates that in terms of taxation such corporations are treated with regards to non-profitable character of their activities (the measure therefore does not take into account the status of public benefits).
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The Government also proposed a legal measure dealing with the tax on real estate transfers. The previous government expected that tax liability rests on a buyer so that the buyer ensures the transfer of property rights properly as he/she is responsible for the tax (and interested in the proper transfer). The current version of the Bill keeps the previous state of affairs (the tax should be paid by a seller); however, contracting parties may agree on the shift of the tax liability on the buyer.

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The legal measures are heading to the Senate. In the case of Senate’s approval and after the early election, the newly elected Chamber of Deputies has to confirm  the legal measures by its vote.