President Klaus signs tax reform into law

27-12-2011

President Václav Klaus on Tuesday signed a series of bills related to the government’s tax reform. The new legislation introduces a joint collection authority where people will pay their taxes along with health and social insurance; it replaces the 15-percent income tax calculated from the so-called super-gross salary with a new 19-percent tax calculated from base salary; the bills also include an amendment to the Czech legislation on lotteries which gives local authorities more power in regulating gambling. The government’s tax reform is set to come into force in 2015; however, Finance Minister Miroslav Kalousek would like to amend it so that it comes into effect a year earlier.