Cancellation of supergross wage postponed

The finance ministry has changed its original intention in connection with cancellation of the super-gross wages (that is wage including all payable taxes and insurance premiums) and the introduction of progressive taxation of the income of natural persons. As we have already informed you earlier ( http://www.fucik.cz/en/articles/cancelling-super-gross-salary-and-progressive-taxation/ ), cancellation of super-gross wages was also an object of the draft amendment of the income tax with planned effect as of 1 January 2019, among other things. According to the opinion of the finance ministry of the Czech Republic, the concept of so-called super-gross wage complicates the setting of tax base in the case of taxpayers with income from employment and the tax burden of these taxpayers is higher than that of other taxpayers. The draft bill also related to replacement of the flat tax rate (with solidarity surcharge) by a progressive rate.

Based on the comments to the tax package, the proposed changes are being put off for the time being. The amendment thus now implements mainly the EU Anti Tax Evasion Directive (ATAD) ( http://www.fucik.cz/en/articles/what-will-new-eu-rules-bring-for-czech-society/ ). We will keep you informed about further steps.