In all discussions about the reform, the team initially disappeared about the accompanying tax changes, which will have the only impact left to the responsible people to save and invest.

In all discussions about the reform, the team initially disappeared about the accompanying tax changes, which will have the only impact left to the responsible people to save and invest.

I missed a few fundamental details about the official presentation of the reform, I mentioned it after its introduction in the article Proposed reforms: yes, but now it turned out that the changes are going to be harsher, not expected. What should affect those who use different financial products?

canceled time test 6 msc for investments in mutual funds and shares and introduced tax return on investments
the tax of the deductible limit for the imposition of pensions into life insurance and pension supplementary income from 12,000 K for each product to 20,040 K for both products in total
zdann rezerv pojioven
reduced income tax deductions for a year from mortgages and including building savings

Only this simple list of proposed changes has sent a simple signal that you will forget that the state will reward your activity and willingness to take care of your future yourself. Revenues from all these changes (with the exception of tax reserves are estimated) do not exceed 2.5 billion crowns, while the deficit of the central budget for 2007 is filled to 98.3 billion crowns. In contrast to the fulfilled revenues from the seemingly responsible breeding, it is also necessary to build the costs of the state on the processing of tax returns and to give the administration, with its long-term costs, a worsening of support for savings and building long-term reserves.

Catch funds

If the time test is canceled, each client would have to pay tax on the difference between the purchase and sale price when selling mutual funds and the event. For a number of employees, this would mean that they would have to pay the tax themselves, not to expect that the employer would process it for them.

labelKUPNOV KN͎KA
Where your profits are lost

In doing so, it discourages a number of small investors from buying mutual funds and shifting them to less intrusive and less transparent alternatives. In addition, financial institutions would have to issue a certificate as a document for tax returns, which means administration, the cost of the right information system and the like.

The Ministry of Finance estimates that the abolition of the time test would gain about CZK 1 billion. At the same time, the company’s investment company registers about 1.7 million retail clients, and the financial councils would have to deal with several hundred million additional tax returns each year, often with only a few thousand in the tax. The processing of tax returns is not free, and the effect of this substantial tax change should be reduced to 200 million crowns, ie two tenths of a percent of this year’s budget deficit. Is it really worth the Ministry of Finance to insure the two million families who have a dispute deposited in mutual funds?

You can find the whole link at investujeme.cz

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