What's New?
We would like to remind you that thin capitalization rule will be re-introduced with effect from 1 January 2009. This will mean that interest paid on related-party loans (in particular shareholder loans) exceeding 6-times equity of the company, will not be tax deductible. Thin capitalisation rule could therefore lead to situations where no interest from shareholder loans would be tax deductible, if the company has negative equity because of its long-term loss position.
The thin capitalisation rule will only apply in situations where the overall average value of loans received by the company exceeds SKK 100 million (EUR 3.3 million approximately).
A new amendment of Income tax act comes in to force from 1 January 2009. The amendment introduces employee's bonus, so called negative tax liability. It relates to those employees who earn minimal wage. The employees with income from dependent activities liable to income tax cannot set up a claim to employee's bonus.