Changes of the tax treatment of the income on Eurobonds

UniCredit Bank Czech Republic and Slovakia,a.s.
Amendments of the Banking Act were published in the Collection of Laws 353/2021 Coll. The changes include amendments to the Income Tax Act in relation to the income from Eurobonds.
Thu, 04/11/2021

From January 1, 2022 the income from Eurobonds issued by the Czech entities that are setup abroad and which will flow to the Czech tax resident, will be taxed. If the beneficiary of the income is a Physical Person, the  latter will be subject to 15% withholding tax. If the beneficiary of the income is a Legal Entity, Czech tax resident, the withholding tax will not be applied.

Withholding tax will not be applied on income paid to Czech tax non-resident (Physical Person or Legal Entity) who are not related person through equity.

Furthermore, the withholding tax rate of 15% will be applied if no documents related to tax residence and beneficial ownership are provided.

EU/EEA Pension Funds are fully exempted according to the provisions in the Czech Tax Code.