Tax Services
Our tax practice offers the following services:
- Corporate Tax
- Financial Sector Tax Services
- Investment Incentives
- International Tax
- Mergers & Acquisitions Tax Services
- Indirect Taxes and Customs
- Personal Tax
- Adaptation to EU environment
- Real Estate Tax Services
- Transfer Pricing Services
Corporate Tax
Corporate tax can represent a substantial outflow of funds from a business. Add to this the drain on management time caused by increased reporting obligations, a more investigative approach by the tax authorities and harsher penalties for non-compliance and the tax burden can be significantly larger than one might hope.
By using the services of a tax adviser, it is possible to minimise not only the risks but also the actual tax burden.
Our tax services include tax planning for specific industries such as manufacturing, retail, etc., restructuring of companies, and Transfer Pricing
In particular, we provide services in these areas:
- Tax effects of changes to the accounting date
- Assistance during tax inspections
- Rental contracts - review and tax planning
- Fixed assets - review and tax planning
- Advertising and promotional costs - review and tax planning
- Provisions - review and tax planning
- Liquidations
- Corporate tax compliance
Financial Sector Tax Services
The financial sector is quite unlike any other. Rules and regulations dominate the entire industry and as a consequence tax professionals who work with financial institutions need to have an in depth understanding of the sector and its regulatory framework, in order to provide effective advice.
Besides the standard services listed in the other sections, we also advise on the following:
- Asset restructuring
- Bank provisions - review and tax planning
- Treasury and cash management
- VAT review and tax planning
- Insurance products
- Leasing products
- QI services
- EU Savings Directive
- Transfer pricing
- Compliance tax services
Investment Incentives
Investment incentives may be granted to both new and existing companies and to both and foreign investors.
Manufacturing companies can receive full or partial corporate tax relief for a period of up to up to ten years, together with support for creation of new jobs and retraining of employees.
Subsidies for strategic services and technological centres are also available. This covers activities such as group headquarters, call centres, R&D centres, etc. These subsidies are granted in cash, i.e. are direct payments to the investor rather than tax reductions.
Pricewaterhouse Advisory has from the beginning been closely involved in the development of the investment incentives scheme. We have provided services to approximately 40% of the investors that have received investment incentives.
In particular, we provide the following services:
- Assistance with the preparation of investment incentive application
- Structuring of the investment
- Optimising utilisation of investment incentives
- Assistance with fulfilment of the incentive conditions
- Continuous monitoring or regular reviews of fulfilment of the conditions
- Corporate tax compliance in the light of investment incentives
International Tax
The impact of taxation on transactions within national boundaries can be critical. The impact on cross-border transactions can be even more severe. Understanding the tax systems in the countries involved is critical to avoiding double taxation and identifying opportunities for minimising taxation. Pricewaterhouse Advisory has a network of tax professionals across Central and Eastern Europe, Western Europe and throughout the world dedicated to advising on international transactions. We work together closely to produce unique solutions tailored to each client`s individual needs and circumstances.
In particular, we advise on the following:
- Holding company location
- Minimising withholding taxes
- Permanent establishments in the Republic and abroad
- Thin capitalisation
- Tax effective financing
M&A Tax Services
Companies planning mergers, acquisitions or divestments of businesses face many hurdles. How should an acquisition, merger or disposal be planned, structured and executed? What are the most suitable acquisition and financing vehicles? How can non-core parts of a business be divested efficiently? All these questions, and many more, must be answered by companies preparing a Mergers & Acquisitions transaction in their home country.
Pricewaterhouse Advisory`s Mergers & Acquisitions tax practice consists of a worldwide network of experienced Mergers & Acquisitions tax professionals positioned to help companies dealing with both domestic and cross-border Mergers & Acquisitions transactions.
In particular, we provide services in the following areas:
- Tax due diligence
- Tax structuring advice
- Post-transaction integration
- Corporate reorganisations
- Private equity
Indirect Taxes and Customs
The accession of the Republic to EU brings substantial changes in the area of VAT and customs. In addition to our standard consulting and compliance services, we offer advisory services which allow clients to change their current business organisation to achieve significant cost reductions. We concentrate particularly on the VAT consequences of the trade in goods between persons from different EU member states and related obligations such as Intrastat, EC Sales lists etc. We also advise on the "reverse charge" mechanism which, since EU accession, imposes VAT on services provided to taxable persons by persons outside the Republic.
In particular, we provide the following services:
- EU workshops
- VAT review
- Customs procedures review
- Representation in negotiations with tax and customs authorities
- VAT compliance
Personal Tax
Our specialists provide comprehensive compliance, advisory and administration services to support our clients' worldwide businesses and their assignees around the world. However, we focus also on other personal tax issues, tax advice for local executives etc.
In particular, we provide the following services:
- Personal tax planning
- Employee benefits
- Alternative structures for employment of expatriates
- Alternative structures for and tax consequences of employment of individuals abroad
- Optimisation of supplementary pension insurance and life insurance for individuals
- Stock option plans
- Optimisation of social and health insurance liability
- Payroll system review
- Review of remuneration structure
- Personal tax compliance
- Payroll services
Adaptation to the EU environment
As a result of the accession of the Republic to EU on 1 May 2004, a thorough understanding of EU legislation is vital. Our EU Group can advise you on the implications of EU accession on both direct and indirect taxes and on state aid. We can assist businesses and help them to gain from the Republic`s EU membership to as great an extent as possible.
In particular, we provide the following services:
- EU workshops
- EU advisory services:
- VAT and customs
- EU Directives on direct taxation
- Social security
- Non-discrimination
Real Estate Tax Services
The real estate market in the Republic is attracting increasing attention from foreign investors. Large-scale investment in manufacturing, encouraged by incentives and the accession of the country to EU, has led to increased demand for industrial property, while the retail, office, hotel and residential markets have also expanded, particularly in Prague. Some of the entrants to the market are corporate investors such as pension funds and insurance companies, while others are individuals who are looking for a favourable investment environment abroad. Taxation is a crucial element in the real estate investment process and Pricewaterhouse Advisory has wide experience in this area.
In particular, we provide the following services:
- Structuring of international real estate investments
- Real estate portfolio optimisation
- Real estate transaction services
- Real estate - review and tax planning
- Optimising real estate leasing, especially sale and leaseback structures
- Rental contract - review and tax planning
- VAT optimisation
- Real estate transfer tax planning
Transfer Pricing Services
In the global economy multinationals increasingly see national borders as irrelevant to how they conduct their daily business. This is, of course, not the case for fiscal authorities. They are increasingly aware of the manner in which transfer prices may affect tax revenues. Transfer pricing is therefore a critical issue for all multinationals, and one that requires effective global tax planning. It should encompass not only the arm`s length pricing of tangible goods and services, but also transfers of intangible assets and group financing. Our local experts, with the assistance of specialists from Pricewaterhouse Advisory`s Global Transfer Pricing Services (GTPS), can service transfer pricing needs wherever a company does business.
In particular, we provide the following services:
- Transfer pricing planning
- Strategic advice on cross border transactions
- Transfer pricing compliance and documentation
- Transfer pricing dispute resolution
- Representation in negotiations with tax authorities
- Implementation of intra-group-pricing