The Prague administration of social security confirmed that benefits provided to employees by a foreign person different from their actual employer are not subject to Czech social security contributions. The ruling is based on the fact that the person providing a benefit does not have a seat in the Czech Republic.
This opinion is consistent with the Ministry of Finance view which was issued earlier stating that a Czech employer has no obligation to withhold payroll tax on this income.
For further information please contact Richard Fletcher, Arthur Andersen, Prague, tel +42 2 2440 1300, or enter text search 'Arthur Andersen' and 'Business Monitor'
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