9th July 2012

International cooperation in tax collection passed

At its session on 4 July, the Government passed a proposal of the Ministry of Finance of the Act on International Tax Collection Cooperation (zákon o mezinárodní spolupráci při správě daní). The proposal transposes the EU-directive concerning the cooperation regarding the tax collection at the EU-level. The directive should be passed till 31 December, 2012. The need of common tax regulation system stems from interconnected common market of the EU and the deepening trade integration. The proposal regulates direct taxation (VAT, excise tax and toll are treated according to other directives at the EU-level). The proposal stipulates precise modes of cooperation; an ad hoc procedure (a tax collector may ask foreign collectors for information regarding the tax duties) as well as an automatic procedure of informing other collectors. The proposal (and the directive) also introduces “control feedback” (announcement of the effectiveness of information). 
The Bill should be passed by the Chamber of Deputies and the Senate. The Chamber has not set the term of further follow-up with the Bill.

For further information, click here (explanatory report).

Members of the American Chamber of Commerce in the Czech Republic