The Czech Republic’s system of company tax is one of the most complicated in the EU, claims a study made in collaboration by the consultancy BDO and two German universities. The Czech Republic ranked fourth from bottom among EU states and its tax system was considered below average in the world-wide ranking.
The volume of foreign capital in Czech companies is at its lowest level
since 2011, according to a study of corporate structures published on
The consultancy Bisnode say the volume of foreign capital stood at 895 billion crowns in April, down 15 percent in annual terms.
Foreign entities currently hold almost 36 percent of the total share capital of Czech companies, Bisnode says.
The Czech government wants to impose a seven-percent tax on large digital
companies, such as Facebook and Google. Under the plan, agreed by the
cabinet on Tuesday, the multinational companies would have to pay taxes in
the place they make earnings.
The cabinet is hoping the move could lead to increased revenues of around five billion crowns a year. The Ministry of Finance is due to draft a digital tax bill by the end of May.
Prime Minister Andrej Babiš has refused to make public the so-called
national investment plan encompassing 17,000 projects worth 3.5 billion
crowns, despite his previous promise to do so.
Reacting to an inquiry by Social Democrat MP Zbyněk Stanjura, Mr Babiš said the plan was an internal material and was not intended for publication. The 11-year national investment plan summarizing the country’s infrastructure improvement needs was presented by the ANO party leader last November.
Prague this week for the first time hosted the European leg of the Startup World Cup & Summit, an annual event drawing hundreds of hopefuls and thousands of prospective investors. A Czech startup took the regional prize but lost out to a Swedish one for the continental prize – and $500,000 in seed money.
February saw Czech industrial production experience a year-on-year growth of 1.5 percent, according to the latest Czech Statistics Office report released on Monday. The growth was mainly the result of energy production. The automobile manufacturing sector experienced a decline, but improved compared to previous months.
Czech companies doing business in high-risk markets will now be able to apply for up to CZK 25 million in funding thanks to a new foreign ministry scheme unveiled on Tuesday. It says the plan is the first of its kind in Central Europe and follows the EU’s shift in focus from foreign aid to investment.
The Czech Republic is no longer the most attractive country in the Central
and Eastern European region for German investors.
According to a survey by the German-Czech Chamber of Industry and Commerce released on Wednesday, Estonia now tops the list of 15 countries.
The Czech Republic, now ranked second, had held that spot for three consecutive years. Poland placed third.
The main contributors to the decline in attractiveness are a lack of qualified people and weak vocational education, investors surveyed said. Growing labour costs, lack of transparency in public procurement and corruption are also worrying.
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