No change was made to the current corporate tax rate of 39%.
Receivables contributed after 1 July 1996 to the capital of the company other than through a transformation or merger will no longer qualify for bad debt tax relief. Certain other technical restrictions for bad debt relief have also been introduced.
A number of categories of technical equipment (including some laboratory equipment) have been moved from the 15 year depreciation group to the 8 year depreciation group. These reclassifications are effective in the 1996 tax year.
A number of technical adjustments to the treatment of capital expenditure by lessees have been implemented.
The content of this article is intended to provide a general guide to the subject matter. It is therefore not a substitute for specialist advice.
For further information contact Paul Antrobus or Richard Fletcher, Arthur Andersen Prague, tel +42 2 2440 1300 or enter a text search 'Arthur Andersen' and 'Business Monitor'.
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19 December 1996