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Czech thin capitalisation rules revamped on January 1

December 15, 2007

Changes will broaden the base of the thin capitalisation regime

Thin capitalisation rules are on the verge of reform in the Czech Republic. Slovakia is making similar changes to take effect at the same time. The Czech Ministry of Finance has issued guidance to the rules to make taxpayer compliance and adjustments easier. PricewaterhouseCoopers in Prague says that main changes come in section 25.1 of the Income Taxes Act (ITA).

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