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SUPPLEMENTARY INSTRUCTIONS
1.	 Calculations and workings need to be made to the nearest CZK if the law does not require otherwise.
2.	 All apportionments should be made to the nearest month.
3.	 All workings should be shown in Section B.
TAX RATES AND ALLOWANCES
The following tax rates and allowances for 2018 are to be used in answering the questions.
Corporate income tax rate
Rate	19%
Corporate income tax credits (CZK)
Disabled employees	 18,000/60,000
Personal income tax rate
Rate	15%
Solidarity surcharge on income over CZK 1,438,992	 7%
Personal income tax credits – annual amounts (CZK)
Personal tax credit	 24,840
Dependent spouse credit	 24,840
First child credit	 15,204
	 (maximum bonus CZK 60,300)
Second child credit	 19,404
Third and further child credit	 24,204
Student credit	 4,020
Credit for expense in preschool facility	 12,200
Disabled employees	 18,000/60,000
3 [P.T.O.
Social security and health care contributions
Cap for social security purposes	 CZK 1,438,992
Employment
Health care	 Employee’s contributions	 4·5%
	 Employer’s contributions	 9·0%
Social security	 Employee’s contributions	 6·5%
	 Employer’s contributions
	 Pension scheme	 21·5%
	 Illness insurance	 2·3%
	 Unemployment insurance	 1·2%
	Total	 25·0%
Private entrepreneur
Health care contributions	 13·5%
Minimum monthly/annual assessment base	 CZK 14,989·50/179,874
Social security contributions
Social security	 29·2%
Illness insurance	 2·3%
Minimum monthly/annual assessment base for the main activity	 CZK 7,495/89,940
Minimum monthly/annual assessment base for the secondary activity	 CZK 2,998/35,976
Threshold limit for obligatory participation in social security
in the case of the secondary activity	 CZK 71,950
Value added tax (VAT)
Standard rate	 21%
Reduced rate	 10% and 15%
Threshold registration limit	 CZK 1,000,000
Repo interest rate
Applicable on 1 January 2018	 0·5%
Minimum wage
CZK 12,200
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Tax depreciation
Tax depreciation periods for tangible assets
Group 1	 3 years
Group 2	 5 years
Group 3	 10 years
Group 4	 20 years
Group 5	 30 years
Group 6	 50 years
Tax depreciation periods for intangible assets
Audiovisual work	 18 months
Software and R&D results	 36 months
Other intangible assets	 72 months
Depreciation rates under the straight-line method
	 1st year	 following years	 for increased input price
Group 1	 20	 40	 33·3
Group 2	 11	 22·25	 20
Group 3	 5·5	 10·5	 10
Group 4	 2·15	 5·15	 5·0
Group 5	 1·4	 3·4	 3·4
Group 6	 1·02	 2·02	 2
Where the depreciation rates for the first three groups are increased by 10% in the first
year:
	 1st year	 following years	 for increased input price
Group 1	 30	 35	 33·3
Group 2	 21	 19·75	 20
Group 3	 15·4	 9·4	 10
Depreciation rates under the accelerated method
	 1st year	 following years	 for increased input price
Group 1	 3	 4	 3
Group 2	 5	 6	 5
Group 3	 10	 11	 10
Group 4	 20	 21	 20
Group 5	 30	 31	 30
Group 6	 50	 51	 50
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Tax deductible provisions limits valid from 2015
Due time after the maturity date of a qualifying provision
More than
18 months	 50%
30 months	 100%
Tax reserves
Creation of tax reserves – maximum number of years for creation
Group 2	 3 years
Group 3	 6 years
Group 4	 8 years
Group 5	 10 years
Group 6	 10 years