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Taxation of Individuals in 2013

Cooperation Persons

Solidarity Surcharge & Advance Payments

Cooperating Persons

The General Financial Directorate commented on the application of lump-sum expenses by individuals and the discount for a spouse who is a cooperating person.

In our opinion, the absolute maximum lump sum expenses must be applied in respect of the total income generated by individual gainful activities performed in cooperation with one’s spouse, i.e. before the allocation of incomes and expenses incurred in connection with the cooperating person.

In connection with the above-mentioned statement, the General Financial Directorate confirmed that where taxpayers (gainfully self-employed individuals) deducting lump-sum expenses would allocate incomes and expenses to the cooperating person, the restriction of the deductibility in relation to dependent children pursuant to Section 35ca of the Income Tax Act would only apply to the main individual, not to cooperating gainfully self-employed individuals.

Solidarity Surcharge & Advance Payments

The solidarity surcharge included in the Income Tax Act for a temporary period became effective on 1 January 2013.

For taxpayers with employment income, the solidarity surcharge will be applied when calculating their income tax advance payments. 

The solidarity surcharge will be calculated for the income tax advance payments from the positive remainder between the income included in the tax base for calculating the advance payment and the amount of CZK 103, 536.

Taxpayers whose tax advance payments were increased by the solidarity surcharge will be required to file a personal income tax return.

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