SUPERCEDED

XXV.   Inheritance tax, Gift Tax, Real Estate
Transfer Tax  

Persons are divided into 3 groups for calculating purposes of inheritance tax and gift tax representing the relation of the taxpayer towards the testator or donor.

Group I
relatives in direct line and husbands/wives

Group II
brothers/sisters, relatives of husbands in direct line, persons who have been living with donor/testator/transferor at least one year in the joint household and other relatives (e.g. nephews, nieces, brothers/sisters in law etc.)

Group III
other individuals and legal entities

Tax rates

Gift tax:
Tax rates differ according to the groups stated above for example:

Group I
tax base up to Kc 1,000,000 is 1%, if the tax base exceeds 50,000,000 tax rate is 1,462,000 + 5% on excess over 50,000,000

Group II
tax base up to Kc 1,000,000 is 3%, if the tax base exceeds 50,000,000 tax rate is 3,915,000 + 12% on excess over 50,000,000

Group III
tax base up to Kc 1,000,000 is 7%, if the tax base exceeds 50,000,000 tax rate is 12,460,000 + 40% on excess over 50,000,000

Inheritance tax:
Tax rates are one half of the gift rates.

Real estate transfer tax:
Tax rate is 5% of the tax base.

Inheritance tax

Beneficiary is taxpayer. Real estate and movable assets are taxable, real estate located abroad is not taxable. Taxation of movable assets depends on nationality and domicile of the testator. If the testator is foreigner, only movable assets located in the Czech Republic are subject to the tax.

Gift tax

Donee is taxpayer; when donating abroad, taxpayer is the donor. The value of all movable assets donated by the same person to the same person during 2 consecutive calendar years is annualized.

Real estate transfer tax

Seller is taxpayer, buyer is the guarantor of the tax. If real estate is exchanged, both seller and buyer are taxpayers. Tax base is the contractual price or the price determined according to government regulation, whichever is higher.