Czech News - Mar 96 - Future Tax Developments

VAT RATES

The Finance Ministry announced that the basic VAT rate which is 22% should be lowered to 19% over the next three years in order to match with the VAT rate band required by the EU.

SOCIAL SECURITY RATES

The rate of certain Social Security contributions should be lowered by about 0.3 percentage points in 1997. As a result, employers would pay social security of 25.7% in 1997 instead of the current rate of 26% in 1996 on behalf of their employees. Self-employed persons would pay social security of 29.3% in 1997 instead of 29.6% in 1996.

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