Act No. 92 / 2017 Coll.
Act amending Act No. 164 / 2013 Coll., on International Cooperation in Tax Management and on the Amendment to Other Related Acts, as amended, and Act No. 105 / 2016 Coll., amending certain laws in the field of International Cooperation in Tax Management and repealing Act No. 330 / 2014 Coll., on the Exchange of Information on Financial Accounts with the United States of America for Tax Management purposes
Valid
Effective from 01.04.2017
92
THE LAW
of 8 March 2017
amending Act No 164 / 2013 Coll., on International Cooperation in Tax Administration and on the Amendment of Other Related Acts, as amended, and Act No 105 / 2016 Coll., amending certain laws in the field of International Cooperation in Tax Management and repealing Act No 330 / 2014 Coll., on the Exchange of Information on Financial Accounts with the United States of America for Tax Management purposes
Parliament has decided on this law of the Czech Republic:
Amendment to the International Tax Administration Cooperation Act
Act No. 164 / 2013 Coll., on International Cooperation in Tax Administration and on the Amendment of Other Related Laws, as amended by the Senate Act No. 344 / 2013 Coll., Act No. 105 / 2016 Coll. and Act No. 188 / 2016 Coll., is amended as follows:
1. In footnote 1, the words "and Council Directive (EU) 2015 / 2376 'shall be added at the end of the text.
2. in Part One, Title III, Part 2, the following Section 1 is inserted:
General provisions for automatic exchange of information
Definition of automatic exchange of information
Automatic exchange of information means the regular and systematic provision of pre-determined information by the central liaison body to the contact point of another State which takes place during regular periods without prior request.
Subject matter of automatic exchange of information
(1) The subject of automatic information exchange is information
(a) by type of income and property;
(b) notified by financial institutions;
(c) tax opinions with a cross-border element.
(2) The information referred to in paragraph 1 may also be subject to automatic exchange of information under an international agreement.
Communication to the European Commission
The Central Contact Authority shall communicate to the European Commission, once a year, statistical information on the volume of automatic exchanges in relation to Member States. Where available, it shall at the same time provide information on the costs, benefits and changes related to the implementation of this form of international cooperation.
Procedure for receiving information by the Central Contact Authority
The central liaison body shall receive and use information from the contact point of another State. ';
Sections 1 to 3 shall be renumbered Sections 2 to 4.
3. Paragraph 13 (1) reads as follows:
"(1) In the case of automatic exchange of information by type of income and property, information shall be provided concerning persons who, under the legislation of another State, are subject to taxation in that other State by reason of their residence, permanent residence, registered office or place of management, according to the types of income or property referred to in the relevant European Union law governing administrative cooperation in the field of taxation (2) and laid down in the Ministerial Decree. ';
4. In Article 13 (2) and (4), the text "(a) 'is deleted.
5. Paragraph 13 (5) is deleted.
Paragraph 6 shall become paragraph 5.
6. In Article 13 (5), the text "(a) 'is deleted.
7. In Section 13a, the words "the central liaison body shall regularly provide the contact point of another State 'are replaced by the words" The automatic exchange of information notified by financial institutions shall be provided'.
8. in Article 13d (3), point (b) is replaced by the dot and point (c) is deleted;
9. In Paragraph 13d, the following paragraph 4 is inserted after paragraph 3:
"(4) A non-financial entity means a legal person or entity without a legal personality that is not a financial institution. ';
Paragraphs 4 and 5 shall become paragraphs 5 and 6.
10. in Article 13q (3), "notification" is replaced by "notification."
11. in Article 13q, paragraph 4 is deleted;
12. in Part One, Title III, Part 2, the term "Section 4 'is replaced by" Subsection 3' and in the title the words "for automatic exchange of information 'are deleted.
13.
Notification
(1) The Reportable Czech Financial Institution and the Non-Reporting Czech Financial Institution that holds the Reportable Account shall notify the tax administrator of:
(a) whether the Reporting Czech Financial Institution or the Non-Reporting Czech Financial Institution;
(b) the information necessary for the technical security of the notification;
(c) an identification number if the United States of America contact point has assigned that number.
(2) The notification referred to in paragraph 1 shall be submitted by 31 May of the calendar year in which the financial institution is to submit the first notification.
(3) The tax administrator shall determine the data necessary for the technical security of the notification referred to in paragraph 1 (b) and publish it on an official record and in a manner that allows remote access.
(4) Where there is a change in the data referred to in paragraph 1, the financial institution shall report the change to the tax administrator within 15 days of the date on which it occurs. ';
14. In Part One, Title III, Part 2, the following Section 4 is inserted:
Automatic exchange of information on tax opinions with a cross-border element
Preliminary provisions
(1) The automatic exchange of information on tax opinions with a cross-border element shall provide information on:
(a) preliminary tax decisions; and
(b) preliminary assessments of transfer prices.
(2) In the automatic exchange of information on tax opinions with a cross-border element, the central liaison body shall also provide the information referred to in paragraph 1 to the Ministry and the European Commission.
(3) The automatic exchange of information on tax opinions with a cross-border element shall not provide information on a preliminary tax decision or a preliminary assessment of transfer prices which relate exclusively to natural persons.
Preliminary tax ruling
(1) The preliminary tax decision is the decision of the tax administrator on a binding assessment relating to a cross-border transaction.
(2) A preliminary tax decision shall also be a decision other than that referred to in paragraph 1,
(a) which is issued, amended or renewed by the tax administrator and can be contacted;
(b) which is addressed to a person or entity without a legal personality or to a group of persons or units;
(c) the object
1. the interpretation or application of legislation relating to taxes relating to cross-border transactions; or
2. an assessment of whether an activity creates or does not create a permanent establishment; and
(d) which is issued before a cross-border transaction or activity which could create a permanent establishment or before the tax return for the tax period during which the transaction or activity took place.
(3) A preliminary tax decision shall also be the agreement, procedure or action of the tax administrator which fulfils the conditions laid down in paragraph 2 mutatis mutandis.
(4) The cross-border transaction referred to in paragraphs 1 and 2 shall mean:
(a) transactions, or series thereof, of which a party:
1. is not subject to taxation in a State or jurisdiction which has issued, amended or renewed a preliminary tax decision on the grounds of its residence, permanent residence, registered office or place of management;
2. subject to taxation on the grounds of their residence, permanent residence, registered office or place of management simultaneously in several States or jurisdictions; or
3. business through a permanent establishment and this transaction is part of the business of that permanent establishment;
(b) a measure taken by a person or entity without a legal personality in respect of their business through a permanent establishment and where that measure is part of that permanent establishment; or
(c) transactions or series thereof having a cross-border impact.
(5) For the purposes of paragraph 4, an indirect relationship to a cross-border transaction shall be sufficient if a person or entity without a legal personality to which a preliminary tax decision is addressed has an indirect relationship.
Preliminary assessment of transfer prices
(1) The preliminary assessment of transfer prices is a binding assessment of the way in which the price negotiated between connected persons has been created under the Income Tax Act relating to cross-border transactions.
(2) The preliminary assessment of transfer prices shall also be a decision other than that referred to in paragraph 1 which:
(a) is issued, amended or renewed by the tax administrator and can be contacted;
(b) it is addressed to a person or entity without a legal personality or to a group of persons or units;
(c) related to a cross-border transaction and the object of which is:
1. the determination of an appropriate set of criteria for this transaction to determine the prices agreed between connected persons under the Income Tax Act; or
2. the allocation of profit to a permanent establishment on the basis of this transaction; and
(d) it is issued before a cross-border transaction or before the tax return for the tax period during which the transaction took place.
(3) The preliminary assessment of transfer prices shall also be the agreement, procedure or act of the tax administrator which fulfils the conditions laid down in paragraph 2 mutatis mutandis.
(4) The cross-border transaction referred to in paragraphs 1 and 2 shall mean a transaction or a series of transactions,
(a) involving connected persons under the Income Tax Act who are subject to taxation because of their residence, permanent residence, registered office or place of management in different States or jurisdictions; or
(b) which have a cross-border impact.
Scope of information provided
(1) Information on the preliminary tax decision or the preliminary assessment of transfer prices shall include:
(a) identification details of the legal person, entity without legal personality or group of legal persons concerned;
(b) a summary of their content, including a description of the business, transaction or series of transactions in general terms which does not lead to a breach of commercial secrecy or a statutory obligation of confidentiality, a threat to public policy or the security of the Czech Republic;
(c) the date of issue, amendment or renewal;
(d) the date on which they become effective, if any;
(e) the date on which they become effective, if any;
(f) their species,
(g) the value of the transaction or series of transactions to which it relates, if any;
(h) in the case of a preliminary assessment of transfer prices, a description of the set of criteria used to determine negotiated prices between connected persons under the Income Tax Act or such negotiated price;
(i) in the case of a preliminary assessment of the transfer prices, the method used to determine the agreed prices under the Income Tax Act or such agreed price;
(j) the indication of another Member State likely to be affected by them;
(k) identification details of a legal person or entity without a legal personality in another Member State that might be affected by them and the designation of that State with which those persons or units without a legal personality are linked; and
(l) an indication of whether it is based
1. the preliminary tax decision,
2. the preliminary assessment of transfer prices; or
3. The application referred to in paragraph 3.
(2) The data referred to in paragraph 1 (a), (b), (h) and (k) shall not be communicated to the Ministry and the European Commission.
(3) Where the content of the preliminary assessment of transfer prices is agreed with a Contracting State which is not another Member State on the basis of an international agreement which does not permit the provision of information to third parties, the information referred to in paragraph 1 shall contain, instead of the data from that preliminary assessment, the data from the application which led to its issue.
Time limit for disclosure
The central liaison body shall provide information on the preliminary tax decision or preliminary assessment of transfer prices within 3 months of the end of the calendar semester in which those decisions were issued, amended or renewed.
Additional information provided
The central liaison body shall, at the request of another Member State, provide additional information on the preliminary tax decision or the preliminary assessment of transfer prices or their full text. The processing of the application shall be carried out in accordance with the provisions on the exchange of information upon request. ';
15. In the title of Section 30, the words "and the central register 'are added.
16. In Article 30, the words "and the secure central register of Member States for administrative cooperation in the field of taxation 'shall be inserted after the word" networks'.
17. In the second sentence of Section VI of Annex 2, the word "/ identification 'is deleted.
Transitional provisions
1. The Central Contact Authority shall, in accordance with Section 13u of Act No. 164 / 2013 Coll., as effective from the date of entry into force of this Act, provide the contact points of other Member States, the Ministry of Finance and the European Commission with information on the preliminary tax decision or the preliminary assessment of transfer prices issued, modified or renewed from
(a) 1 January 2014 until 31 December 2016;
(b) 1 January 2012 to 31 December 2013, where those decisions were effective on 1 January 2014.
2. Pending the establishment of a secure central register of Member States for administrative cooperation in the field of taxation by the European Commission, the central liaison body shall confirm by electronic means to the contact point of another Member State the receipt of information on the preliminary tax decision or the preliminary assessment of the transfer prices in which the Czech Republic was designated as a State which could be affected by it. The confirmation shall be sent by the Central Contact Authority without undue delay but no later than 7 days after the date of receipt of the information.
3. The notifying Czech Financial Institution shall obtain a declaration of honour pursuant to Article A (IV) of Annex No 2 to Act No 164 / 2013 Coll., as effective from 6 April 2016, for financial accounts opened from 1 January 2016 until 5 April 2016 at the latest before the notification for 2016 pursuant to Article 13k of Act No 164 / 2013 Coll., as effective from 6 April 2016.
4. Notification of the identification number pursuant to § 13q (4) of Act No. 164 / 2013 Coll., as effective before the date of entry into force of this Act, or pursuant to § 6 (4) of Act No. 330 / 2014 Coll., as effective before 6 April 2016, shall be deemed to be a notification under § 13t (1) of the Act No. 164 / 2013 Coll., as effective from the date of entry into force of the Act.
Amendment to the Act amending certain laws in the field of international tax management cooperation and repealing Act No. 330 / 2014 Coll., on the Exchange of Information on Financial Accounts with the United States of America for Tax Management purposes
In Part Two, Article IV of Act No. 105 / 2016 Coll., amending certain laws in the field of international tax management cooperation and repealing Act No. 330 / 2014 Coll., on the Exchange of Financial Account Information with the United States of America for tax management purposes, the current text is renumbered point 1 and the following point 2 is added:
'2. The Notice under Section 38fa of Act No. 586 / 1992 Coll., as effective before 6 April 2016, shall not be submitted for the tax period beginning after 31 December 2015. '.
EFFECTIVE
That law shall take effect on the first day of the first calendar month following its publication.
Hamlet v. r.
Zeman v. r.
Sobotka v. r.
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Regulation Information
| Citation | Act No. 92 / 2017 Coll., amending Act No. 164 / 2013 Coll., on International Cooperation in Tax Administration and on the Amendment of Other Related Acts, as amended, and Act No. 105 / 2016 Coll., amending certain laws in the field of International Cooperation in Tax Management and repealing Act No. 330 / 2014 Coll., on the Exchange of Information on Financial Accounts with the United States of America for Tax Management purposes |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.03.2017 |
|---|---|
| Effective from | 01.04.2017 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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