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Lawmakers pass gov’t bill raising tax deduction for children

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Prague, Jan 13 (CTK) – The Czech Chamber of Deputies passed on Friday a tax package submitted by the centre-left government that mainly raises the tax deduction for the second, third and further child and lowers the income limit for the self-employed using the flat expense write-off method.

The bill raises the tax deduction for the second child by 2,400 crowns to the annual 19,404 crowns, and for the third and further child by 3,600 crowns to 24,204.

The tax deduction for the first child remains at 13,404 crowns.

The bill reduces the yearly income limit for the flat expense write-offs that self-employed people can use to calculate their income tax, from two million to one million crowns.

The package still needs to be passed by the Senate and signed by President Milos Zeman.

It is to take effect as of April 1. The tax deduction measure will have a retroactive effect as from January 1.

The bill was supported by 128 deputies from the government coalition and the opposition Dawn and Communist parties.

The rightist opposition Civic Democrats (ODS) and TOP 09 voted against it.

The Chamber of Deputies rejected other proposals within the bill such as several changes to the electronic registration of sales system (EET) separately submitted by the government ANO and the Christian Democrats (KDU-CSL).

The ODS and TOP 09 also unsuccessfully proposed the abolition of the 7-percent solidarity income tax surcharge paid by people with incomes exceeding 100,000 crowns a month.

Similarly, the lawmakers rejected the ODS and TOP 09’s proposal to reduce VAT rates or introduce only two VAT rates instead of the current three.

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