Income Tax Act Amendment to enter into force starting from 1 July 2017

UniCredit Bank Czech Republic and Slovakia,a.s.
Summary: 
The Amendment to the Income Tax Act was published in the collection of Laws of the Czech Republic as Act no. 61/2017
Wed, 21/06/2017

The Amendment to the Income Tax Act, specifically §38d, withholding tax section, introduces the following provision:

In case of any doubt, the tax payer may turn to the withholding agent for explanation / amendment in a period of up to two years from the date of the income payment (tax reclaims).

Current Statute of limitations

  • Three years from the end of the year in which the dividend payment was made is a market practice, can also be interpreted as 3 years from payment date.
  • Can be limited to 60 days by the issuer, through which the reclaim must be filed with Tax Authority

Impact on investors:

This amendment shall harmonize the period for tax reclaims filing in the local market to 24 months.

In accordance with this amendment, UniCredit Bank will change our current procedures and will require that the tax reclaim instructions, together with relevant tax documents (Certificate of Tax Residence and Declaration of Beneficial Ownership), are delivered within the timeframe of 23 months from the income payment.

Source: Collection of Laws of the Czech Republic