Český finanční a účetní časopis 2012(1):92-103 | DOI: 10.18267/j.cfuc.305

International Taxation of Incomes from Employment under Czech Legal Regulations

Karel Brychta¹, Pavel Svirák²

¹ Mgr. Ing. Karel Brychta, Ph.D. - odborný asistent; Vysoké učení technické v Brně, Fakulta podnikatelská, Ústav financí, Kolejní 2906/4, 612 00 Brno; <brychta@fbm.vutbr.cz>.

² Ing. Pavel Svirák, Dr. - odborný asistent; Vysoké učení technické v Brně, Fakulta podnikatelská, Ústav financí, Kolejní 2906/4, 612 00 Brno; <svirak@fbm.vutbr.cz>.

The paper deals with selected changes in Czech legal regulations in the area of international taxation of incomes from employment in the period 1993-2012. Authors pay attention to some provisions of the Act on Income Taxes that govern taxation of Czech tax resident who acquires foreign income from employment. The main focus is concentrated above all to domestic legal regulation, however, there is a marginal space granted also to the some aspects on the level of international and European Union law. Concerning domestic legal regulation, authors primarily deal with the history in legal regulation of natural persons´ tax residency according to Act on Income Taxes. The stress is put on introduction and assessment of changes specific for incomes from employment. Subsequently, there is treated a history in the conception of partial tax base from employment having its source abroad. For comprehensible reasons, the attention is given to the issue of double taxation avoidance putting stress on Sec. 38f para. (4) of the Act on Income Taxes. In relation to last mentioned, there are presented outputs of mathematical models describing a dependence of tax-payer´s tax liability on a share of foreign income (partial tax base - incomes from employment) in total tax base.

Keywords: International Taxation; Legal Regulation Development; Incomes from Employment.

JEL classification: H24, K34

Published: March 1, 2012  Show citation