Czech News - May 1998 - New Laws And Amendments In Draft

Law on investment companies and funds

Parliament passed the amendment to the law on investment companies and funds on 17 April 1998. Once approved in the Senate, the measure could take effect as of July. According to the amendment, funds will have to cut their maximum holding in any one company from 20% to 11% by the end of 2000. Also, all funds will be required to open-end by the end of 2002. Prior to this, the time schedule for the required opening will depend on the discount (the ratio between market value of the share and net business assets attributable to one share).

Road tax

The Ministry of Transport prepared a provision regarding Transport policy. The provision was prepared as a part of harmonisation with the EU legislation. The document addresses, in particular, the following:

Motor vehicle tax should be introduced in the Czech Republic. This tax should replace road tax paid by both residents and non-residents and prevent the double taxation of foreign transporters, who currently have to pay road tax in the Czech Republic and also motor vehicle tax in the country of their residency.

Highway fees should also be increased to the minimum EU level and should be dependent based on the real usage of roads. As a result, highway fees for periods of 10 days, 2 months and one year will be introduced.

Travelling Expenses Reimbursement Act

Parliament passed an amendment to the Travelling expenses reimbursement act which defines more precision conditions for reimbursement of travelling expenses and should simplify the mechanism for adjusting the reimbursement rates in line with price developments. Meal allowances for business trips abroad should be increased by up to 100%; the standard reimbursement rate per kilometre travelled will be Kc 3,30. The amendment should be effective as of 1 July 1998.

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For further information on the above, please contact Mr Richard Fletcher by telephone on +420 2 2440 1300 or E-mail directly to Click Contact Link