Course detail

International Tax Systems

FP-FmdsKAcad. year: 2024/2025

Tax Systems. International Taxation of Incomes. Harmonization of Tax Systems in the EU – area of direct taxes, area of indirect taxes, reflexion of EU legal regulations in Czech law. Optimization of the tax burden in the context of international taxation. International Tax Planning. Transfer pricing.

Language of instruction

Czech

Number of ECTS credits

6

Mode of study

Not applicable.

Guarantor

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

Department

Institute of Finances (ÚF)

Entry knowledge

Basic knowledge of international taxation of income.

Rules for evaluation and completion of the course

The course is completed with a an exam.

The exam consists of three parts (at least of 50 % shall be reached from the each part):
- 1st part(an example for taxation of a tax resident): max. 15 points (70 minutes),
- 2nd part (examples for taxation of tax non-residents): max. 15 points (60 minutes),
- šrd part (erification of the theoretical knowledge: max. 40 points; 10 open questions; 75 minutes).

Classification according to ECTS.

Attendance at lectures is not compulsory.

Aims

The aim of the course is to make students familiar with current trends in the area of international tax systems. Emphasis will be placed on describing the situation in the European Union. As future tax experts, the students will be provided with an overview of the possibilities and difficulties in international tax planning and optimization.
Knowledge: The student is able to describe current issues and problems connected to tax systems (their establishment, shaping, changes and factors that determine the tax system), they know the legal norms regulating the international taxation of income (the norms of international, EU and domestic law), they can describe the process of international tax planning and determine the tax liability of a tax resident of the Czech Republic with income from abroad and of a tax resident of the Czech Republic with income from sources on the territory of the Czech Republic as well as in more complicated cases (including completing the relevant tax return or report).

Skills: The student is able to comprehensively evaluate the current state and anticipated future developments in the tax field, apply legal norms regulating the international taxation of income, propose steps leading to international tax optimisation, identify risks in the international taxation of income and propose steps toward their elimination, determine the tax liability of tax residents of the Czech Republic receiving various categories of income from abroad, as well as the tax liabilities of tax non-residents of the Czech Republic receiving various categories of income from sources on the territory of the Czech Republic (including completing the relevant tax returns and/or reports).

Abilities: The student can independently solve tasks, the aim of which is international tax optimisation, comprehensively and convincingly convey information concerning the possibilities of international tax optimisation, possible risks and means of their elimination and objectively and rationally justify opinions with reference to the relevant legislation.

Study aids

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

LANG, M. et al. (eds.) Introduction to European Tax Law on Direct Taxation. 2nd ed. Wien: Linde. 223 pgs. ISBN 978-3-7073-1764-0 (EN)
LANG, M. Introduction to the Law of Double Taxation Conventions. 1st ed. Wien : Linde, 2010. 222 pgs. ISBN 978-3-7073-1714-5 (EN)
NERUDOVÁ, Danuše. Daňová politika v Evropské unii. Praha: Wolters Kluwer, 2017. Daně. ISBN 978-80-7552-682-3.
SOJKA, Vlastimil, Monika BARTOŠOVÁ, Pavel FEKAR, Jan MAŠEK, Matěj NEŠLEHA a Ivana VAŇOUSOVÁ. Mezinárodní zdanění příjmů: smlouvy o zamezení dvojího zdanění a zákon o daních z příjmů. 4. vydání. Praha: Wolters Kluwer, 2017. Daně. ISBN 978-80-7552-688-5. (CS) (CS)
SOLILOVÁ, Veronika a Danuše NERUDOVÁ. Transferové ceny: unikátní komplexní zpracování problematiky : praktické pojetí formou případových studií. Praha: Wolters Kluwer, 2019. ISBN 978-80-7598-169-1. (CS)
ŠIROKÝ, Jan. Daně v Evropské unii: daňové systémy všech 28 členských států EU, legislativní základy daňové harmonizace včetně judikátů SDEU, společný konsolidovaný základ daně (CCCTB), akční plán BEPS, zdanění finančního sektoru. 7. aktualizované a přepracované vydání. Praha: Leges, 2018. Teoretik. ISBN 978-80-7502-274-5. Dostupné také z: http://www.digitalniknihovna.cz/mzk/uuid/uuid:25662210-69f0-11eb-9d4f-005056827e52 (CS)

Recommended reading

Not applicable.

Elearning

eLearning: currently opened course

Classification of course in study plans

  • Programme MGR-UFRP-KS Master's 2 year of study, winter semester, compulsory

Type of course unit

 

Guided consultation in combined form of studies

20 hod., optionally

Teacher / Lecturer

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

Syllabus

1. Tax systems and their development – basic definitions, the significance, current state and developing trends, determinants of the tax system, classification and types of tax in contemporary tax systems, benchmarking tax systems.
2. Comparison of states from the perspective of their tax systems, tax competition, tax coordination, tax reforms and their classification, establishing ‘modern’ tax systems, fiscal termites.
3. International taxation of incomes – introduction to the issues, legal regulation, agreements on avoidance of double taxation, their classification, structure, objectives applicability and interpretation.
4. Application of agreements on avoidance of double taxation (Art. 1 – Art. 7 MS OECD).
5. Application of agreements on avoidance of double taxation (regulations for taxing active and passive incomes).
6. Application of agreements on avoidance of double taxation – additional clauses in agreements on avoidance of double taxation and their influence on solving tax issues (prohibition of discrimination, exchange of information, resolving cases by mutual agreement, MFN clauses, mixed provisions).
7. EU tax law – introduction to issues (the norms of primary tax law in the EU, determinants of development in the tax field in the EU, EU objectives and tax policy, EU bodies and their role in the tax field).
8. EU tax law EU – EU secondary legislation (directive removing obstacles, directive deepening cooperation and adjustment of social insurance).
9. EU tax law – indirect taxes (excise taxes – excise and energy taxes and their reflection in the Czech legal order).
10. International tax planning and optimisation – describing basic concepts, boundaries and limits, activity of international organisations (BEPS, etc.).
11. International tax planning and optimisation – the concept of international tax planning, profit drivers, approaches to the creation of international tax strategy, key areas in international tax planning (e.g. the creation of holding structures, management of intangible assets), tax paradises (classification, their use).
12. Transfer pricing – describing basic concepts, regulation in international, EU and domestic law, methods for establishing transfer prices, etc.
13. Selected issues from the international taxation of income (the rule of low market capitalisation, reclassification of interest, developments in case-law, etc.).

Elearning

eLearning: currently opened course