Course detail

Tax Systems in Foreign Countries

FP-DSZAcad. year: 2012/2013

The course is intended to complete the knowledge of tax problems in the area of income tax. The course deals with the issue of international double taxation. In this course students are familiarized with the problems of international double taxation and methods serving for its elimination. Considerable attention is paid to legislative regulation in the European Union. Central terms are as follows: resident, permanent establishment, securing of the tax and international treaties on avoidance of double taxation.

Language of instruction

Czech

Number of ECTS credits

6

Mode of study

Not applicable.

Guarantor

Ing. Pavel Svirák, Dr.

Department

Institute of Finances (ÚF)

Learning outcomes of the course unit

Students will learn how to calculate the taxes of foreigners operating in the Czech Republic. They will be cognizant of the use of double taxation conventions. There will also be able to propose appropriate steps leading to tax optimization in case of an international element existence. They will be able to draw up both standard tax returns for income tax and tax returns of Czech Republic tax residents having incomes from abroad and also tax returns of Czech Republic tax non-residents having incomes with their source in the Czech Republic.

Prerequisites

Knowledge of accounting, financial statements and of Act on Income Taxes.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

Teaching methods depend on the type of course unit as specified in the article 7 of BUT Rules for Studies and Examinations.

Assesment methods and criteria linked to learning outcomes

Conditions for passing an exam: Students have to demonstrate their knowledge acquired in the course and apply it in practice.
Form of examination: a written test.

Course curriculum

• General introduction, basic concepts, principles of taxation, legislative regulation (international law, EU law, national law)
• Selected aspects of the tax issues regulations in the Republic, the role of case law
• Convention for avoidance of double taxation in general, their importance and objectives
• Tax residence and its determination in accordance with conventions on avoidance of double taxes and in accordance with Act No. 586/1992 Coll.
• Non-resident taxpayers and taxation of their income from sources in the CR
• Permanent establishment and determination of its tax obligations
• Securing of the tax (purpose, legal regulations, subjects required to perform securing of the tax, determination of amount)
• Taxation of single income types acquired by residents from abroad and by non-residents in connection with the relevant provisions of the conventions on the avoidance of double taxation and Act No. 586/1992 Coll., on income taxes, as amended (income from property sales, rental income, employment income, royalties, dividends, ...).
• Methods to avoid double taxation (purpose, types, possibilities of application, practical examples)
• Foreign exchange rates and their application

Work placements

Not applicable.

Aims

Students will be made familiar with the theory and practical aspects of solving problems arising when two taxation systems are in a conflict. Students will have an overview of possibilities and difficulties resulting from international business relations from the tax view. They will learn how to calculate the taxes of foreigners operating in the Czech Republic. They will be cognizant of double taxation conventions and will be able to set the tax liability using relevant methods.

Specification of controlled education, way of implementation and compensation for absences

The participation at lectures is not obligatory.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

Smlouvy o zamezení dvojího zdanění (CS)

Recommended reading

http://www.mfcr.cz (CS)
Vyškovská M (2003) Cizinci a daně. Praha, ASPI Publishing, ISBN 80-86395-90-1 (CS)

Classification of course in study plans

  • Programme BAK Bachelor's

    branch BAK-DP , 3 year of study, summer semester, compulsory

Type of course unit

 

Lecture

20 hod., optionally

Teacher / Lecturer

doc. Ing. Mgr. Karel Brychta, Ph.D.

Syllabus

A brief description of lectures:
 Income taxes and property taxes in relation to foreign countries
 Double taxation conventions
 Solution of consequences of double-taxation conventions
 Business activities of non-residents in the Czech Republic
 Permanent establishment in terms of Czech regulations
 Techniques of tax fulfillments of non-residents.
 Theory of double-taxation (including the contracts examples)
 Methods applied to abolish the double taxation
 Practical example demonstrating calculation of income from abroad in terms of current tax returns
 Income taxation of foreigners in the Czech Republic
 Tax assurance and withholding tax.