Brussels, 19 February 2009
According to the Czech rules, the tax on certain types of income of legal persons and individuals resident in another EU Member State or EEA/EFTA state is assessed on a gross basis, while the tax on the same kind of income earned by Czech residents is assessed on a net basis. This concerns, in particular, income from rewards and remuneration paid to independent professions, royalties, lease of movable property and from the provision of services, consultancy, advisory, managing, intermediary and other activities.
The Commission is of the opinion that these rules may prevent non-residential taxpayers from providing services or making investments in the Czech Republic and thus restrict the freedom to provide services and the free movement of capital. The Czech Republic thus fails to fulfil its obligations under Articles 49 and 56 of the EC Treaty and Articles 36 and 40 of the EEA Agreement.
The Commission's case reference number is 2008/2163.
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