Final Word from Friday, December 15, 2006





Talks between ODS and âSSD fell apart this week, but not before the two parties helped pass a one-year delay in a new sickness-insurance law that would have ruined many people's Christmas. TPCA car maker complained in HN about the last-minute change, but its Japanese managers received a consolation prize. A little-reported part of the law requires employees from non-EU countries without totalization treaties, such as Japan, to start paying Czech social taxes. This bolt from the sky was another argument used to convince lawmakers to delay the effective date. The business community can only hope that, despite the heated situation, politicians will continue to listen to reason on issues bringing broad benefit. Another issue is simplifying personal income tax. Elimination of the top bracket and a widening of the other three would be a nice goal for Christmas 2007.[Czech Republic social security health insurance agreement European Union]

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