Clifford Chance

Withholding tax exemption of Eurobonds proposed to be abolished

27 May 2020

The Czech Ministry of Finance published a draft bill amending the tax treatment of interest income from bonds in the Czech Income Taxes Act with the proposed effective date from 2021. The most substantial change with a potentially large impact on the market practice relates to the tax treatment applicable to bonds issued by Czech tax residents outside the Czech Republic (customarily referred to as Eurobonds, although they can be denominated in any currency).

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