scholarly journals Quantification of Fiscal Impacts of Personal Income Tax Reforms Implemented in the Czech Republic

2021 ◽  
Vol 69 (6) ◽  
pp. 651-668
Author(s):  
Jana Tepperová ◽  
Jan Pavel ◽  
Markéta Arltová
Keyword(s):  
Czech Republic ◽  
Income Tax ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Reforms ◽  
The Czech Republic ◽  
Fiscal Impacts

scholarly journals Measurement of Effectiveness of Personal Income Tax in the Tax System of the Czech Republic

2014 ◽  
Vol 62 (2) ◽  
pp. 307-314 ◽  
Author(s):  
Břetislav Andrlík
Keyword(s):  
Czech Republic ◽  
Income Tax ◽  
Personal Income ◽  
Personal Income Tax ◽  
Public Budget ◽  
Tax System ◽  
The Czech Republic ◽  
The Public ◽  
Administrative Costs ◽  
The World

This article deals with the issues of effectiveness of personal income tax in the Czech Republic. The personal income tax in the Czech Republic, referred to as the tax on income of natural persons, represents a significant part of the public budget revenue (23.35% of all tax revenues in 2012). One of the principles of a good tax system is the principle of its effectiveness. The effectiveness of a particular tax is measured by various methods. The theory distinguishes between two types of costs expended on the collection of taxes, i. e. administrative costs (direct or indirect) and excessive tax burden. In the case of direct administrative costs the measurement compares the total volume of a particular tax revenue with the costs of its collection. The amount of the tax levied is thus not a net income of the public budget, due to the fact that it must be reduced by the costs of the public sector which are necessary for obtaining such amount. In this contribution we shall focus on the measurement of direct administrative costs. The measurement of effectiveness of income tax on natural persons is performed with the use of the full-time equivalent (FTE) method, which is based on the classification of revenue authorities staff according to their jobs and on the determination of conversion coefficients in order to identify costs related to the collection of a particular tax. A separate part of the article deals with measurements of tax system effectiveness in the international scope. We cite an important international study, "Paying Taxes 2013: The Global Picture", annually prepared by the World Bank and PricewaterhouseCoopers, which analyses demands of tax systems in different countries of the world.

scholarly journals Impact of Lump Sum Expense Rates on Public Revenue

2015 ◽  
Vol 63 (3) ◽  
pp. 1023-1030
Author(s):  
Jana Tepperová ◽  
Jan Pavel ◽  
Lenka Láchová
Keyword(s):  
Czech Republic ◽  
Income Tax ◽  
Personal Income ◽  
Special Role ◽  
Personal Income Tax ◽  
Tax System ◽  
The Czech Republic ◽  
The Public ◽  
Lump Sum ◽  
Public Revenue

Lump sum expense has special role within the Czech tax system. As the percentages of the lump sum expense used in the Czech Republic are high compared to other EU countries, they are often criticized as distortive and government searches for ways to limit their use. On the other side, the long-standing role of the lump sum expense in the Czech tax system hinders its decrease. Based on the data from the personal income tax returns of self-employed we analyze the use of the lump sum expense in the Czech Republic over the years 2004 to 2012. Using the same data and controlling for other variables, we estimate the impact of the lump sum expenses’ rates on public revenue (personal income tax, social security and health insurance revenue). According to the results, the higher number of taxpayers using the lump sum expense does not influence the public revenue, but there is negative effect of the average portion of lump sum expense to taxable income on the public revenue.

scholarly journals Evaluation of the Impacts of Selected Tax Reforms Influencing the Income of Individuals in the Czech Republic

2016 ◽  
Vol 64 (4) ◽  
pp. 1401-1407 ◽  
Author(s):  
Jana Tepperová ◽  
Jan Pavel
Keyword(s):  
Czech Republic ◽  
Impact Assessment ◽  
Income Tax ◽  
Personal Income ◽  
Assessment Process ◽  
Personal Income Tax ◽  
The Czech Republic ◽  
Regulatory Impact ◽  
Public Revenues ◽  
Regulatory Impact Assessment

Ability to predict the impacts of proposed tax changes is crucial for effective and transparent tax policy. The ex-ante impact evaluation of proposed changes is in the Czech Republic part of the Regulatory Impact Assessment process and assumed effects are published within the reasoning reports to the amendment laws. We use the top-down approach to calculate ex-post the impacts of the most significant changes in personal income tax and contribution on obligatory insurance on public revenues and compare the results with forecasted effects from reasoning reports. We use data for the period of 1994 to 2014 and create three models to quantify the impact on personal income tax revenue, social security contribution and health insurance contribution. The results show the tendency to underestimate real effects about a third to a half when calculating the projected impact on public revenues. For more accurate estimations we recommend higher transparency in presented methodology within the Regulatory Impact Assessment process and evaluation by independent institution for changes with significant impact.

scholarly journals Tax Law: Third Party As Payer of Income from Dependent Activity

2013 ◽  
Vol 13 (1) ◽  
pp. 147-161
Author(s):  
Jana Tepperová ◽  
Lucie Rytířová
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Point Of View ◽  
Third Party ◽  
Personal Income Tax ◽  
The Czech Republic ◽  
International Regulations ◽  
Set Up ◽  
Specific Tax ◽  
Collection Point

Abstract Employment related income paid by a third party (non-employer) has its specific tax treatment. In the Czech Republic, a different approach applies for calculation of personal income tax and obligatory insurance contributions from this income. With the preparation of the Single Collection Point (unifying the collection of personal income tax and obligatory insurance contributions), the question arises whether it is possible to set up unified treatment of this income for all obligatory payments. We provide detailed analyses of this topic from the point of view of the Czech legislation and comparison with selected countries. Further we follow with the discussion of problematic issues in unified treatment for all obligatory payments from this income; such as discrimination and complicated administration. We conclude that even if the national legislation for all obligatory payments from this income would not diff er, there will still be different treatment due to specific international regulations.

scholarly journals Personal Income Tax and Social Security Coordination in Cross-Border Employment – a Case Study of the Czech Republic and Denmark

2019 ◽  
Vol 21 (1) ◽  
pp. 23-41 ◽  
Author(s):  
Jana Tepperová
Keyword(s):  
Social Security ◽  
Income Tax ◽  
Personal Income ◽  
Personal Income Tax ◽  
The Czech Republic ◽  
Cross Border ◽  
Social Security Contributions ◽  
The Impact ◽  
The Eu

Neither personal income tax nor social security is harmonised within the EU. Social security systems are coordinated at EU level whereas personal income tax in cross-border situations is governed by respective double tax treaties. In most EU countries, personal income tax and social security contributions are relatively distinct payments. This article examines problems surrounding the interaction between personal income tax and social security contributions on a national and international level based on a case study of cross-border employment between the Czech Republic and Denmark. As the Czech and the Danish systems are designed very differently, the case study allows for clear illustration of the issue at-hand. The aim is to identify the elements influencing the impact of different coordination rules in personal income tax and social security contributions, illustrate and discuss the potential problems of such mismatches between the two payments. The impact on final payments differs, not only due to the different levels of coordination of the payments, but also due to the different designs of the two national systems. Thus, it would be very difficult to address all the scenarios with a one size fits all measure for all the EU Member States that would overcome the differences in this coordination.

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