1. Taxation on Incomes of Natural Persons in the Czech and Slovak Republics - Comparison Karel Brychta

2. Outline Introduction Natural Persons Taxation and EU membership Taxpayers and categories of incomes in Visegrád Group countries Basic means of tax optimization in Czech and Slovak AIT Effective tax rate for incomes from employment (CR and SR) Conclusion

3. Introduction taxes – a necessary evil searching for answers to questions of how to optimize tax system competition and cooperation in tax area  comparative analysis

4. EU membership and its impact principles of subsidiarity and proportionality direct competence provided in relation to indirect taxes case law of the Court of Justice

5. Taxpayers in V4 Tax residents vs. tax non-residents Conventions for Avoidance of Double Taxation

6. Taxpayers in V4 countries CountryNumber of tax residency criterion Czech Republic2 Hungary7 Poland2 Slovak Republic2 Source: 1.Czech ITA 2.Slovak ITA 3.Kesti, J. (ed.) (2009). European Tax Handbook 2009

7. Incomes in V4 countries differences in numbers of partial tax bases however, despite these differences it seems the incomes, which are subject to natural persons income tax, are at very least very similar very interesting issue – flat rate expenses

8. Basic means of tax optimization (CR and SR) CR ◦ Non-taxable parts of the tax base ◦ Tax abatements ◦ Child tax allowance SR ◦ Non-taxable parts of the tax base ◦ Child tax bonus

9. Effective tax rate – comparison CR and SR Effective tax rate without social security and health insurance payments

10. Effective tax rate – comparison CR and SR Effective tax rate with social security and health insurance payments

11. Conclusion ? trends in natural persons taxation ? ? convergence of tax systems? identification of consonant and different elements in legal regulations etc.

12. I thank you for your attention. ? Your questions ?