Tax Aspects of Profit Share Advances
How are the advances taxed? Unfortunately, the amendment to the Income Tax Act (ITA) did not sufficiently address such changes and therefore certain situations will be problematic for taxpayers.
Although it is not expressly set forth by the ITA, the tax regime for paying a profit share advance is most likely identical to the regime for paying out profits. But trouble may occur if – in the period between the payment of the profit share advance and the moment of settlement – a member is changed, for example, if the corporation does not generate a sufficient level of profit or the general meeting does not approve the dividends payment. The ITA does not specifically cover such situations. Who is the taxpayer in this case? Can a corporation apply to have withheld tax returned? There are no clear answers. Therefore, the act will most likely have to be changed or a clear standpoint from the General Financial Directorate will be necessary.
Other articles
Je stabilita stavebního práva reálným cílem?
Advokátní kancelář KŠB byla odborným garantem diskuse legalwebu s názvem „Stabilita stavebního práva – iluze, nebo reálný cíl?“, která na konci dubna přivedla ke společnému stolu zástupce veřejné správy, developerů, profesních svazů i dalších odborníků ze stavební praxe. Debata se zaměřila na aktuálně projednávané změny nového stavebního zákona (NSZ) a jejich očekávané dopady.
EU261 in the Age of the Hormuz Blockade: How Airlines Can Protect Themselves Before the Crisis Peaks
EU261 in the Age of the Hormuz Blockade: How Airlines Can Protect Themselves Beforethe Crisis Peaks
KŠB advises Olpran in Bikero insolvency proceedings
Kocián Šolc Balaštík has advised bicycle manufacturer Olpran, a notable player in the Czech cycling market, in the insolvency proceedings of Bikero.
