Year 2008, Gimme the Money!
Written by cd on December 17, 2007 – 7:11 am -From expats.cz forum with slight modification
How much money will you get from 2008 on?
The calculator at http://www.finance.cz/dane-a
- if you make 30,000 kc per month, you will save 171 kc in 2008.
- if you make 60000 kc per month, you will save 2389 crowns in tax year 2008.
- if - you make 100000kc per month, you will save 8288 crowns.
But there was never a flat tax rate of 32%, only for a certain portion of earnings. The breakdown was 12% on the amount up to 121200, 19% on the amount between 12000 and 21000, 25% on the amount between 21001 and 33000, and 32% on the amount over 33000 (so it actually was applied only in the event you earn appox. 27,500 kc per month)
The actual tax rate was always less than 32%. Now it will be the flat percentage for everyone. So in a way a tax rate increase for those who make less, that is balanced out by the higher personal allowance, so it only makes a big difference if you have high earnings.
[Expats.cz, Thanks Sascha!]
Tags: finance, money
Posted in Living, Society |
December 20th, 2007 at 9:47 am
You should also mention that this tax reform actually will have quite negative effects as you get only a little bit more on your pay slip but VAT will grow from 5% to 9%. This will couse the increase of prices of food and construction services including prices of new appartments.