System of taxes in the Czech Republic
- our system (1. 1. 1993):
A) direct taxes:
1. income taxes,
2. real estate tax,
3. real estate-transfer tax, inheritance tax, gift tax,
4. road tax;
B) indirect taxes:
1. value added tax,
2. excise taxes,
3. tax for environment (it hasn´t so far the executive law
and isn´t levied).
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Direct taxes:
- in competence of tax offices
(they fall within the Ministry of Finance)
Indirect taxes and customs:
- in competence of customs offices
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Main features of public finances reform - taxes:
a) Direct taxes
1. NATURAL PERSON INCOME TAX
Today (until 31.12.2007):
Tax base
Tax
0 – 10 100 CZK
12 %
≈ (0 – 480 UDS)
10 101 – 18 200 CZK
1 212 + 19 % of base exceeding 10 100 CZK
≈ (480 – 870 USD)
≈ (58 USD + 19 % of base exceeding 480 UDS)
18 201 – 27 600 CZK
2 751 + 25 % of base exceeding 18 200 CZK
≈ (870 – 1 315 USD)
≈ (131 USD + 25 % of base exceeding 870 USD)
27 601 and more CZK
5 101 + 32 % of base exceeding 27 600 CZK
≈ (1 315 USD and more USD)
≈ (243 USD + 32 % of base exceeding 1 315 USD)
Tax base = gross wage – insurance (8 % social insurance; 4,5 % health insurance)
An employer must pay for each employee 26 % social insurance and 9 % health insurance.
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- only one rate: 15 %
- levy from „super-gross wage“, i. e.
gross wage + social payments paid by employer
(it corresponds to 20,25 % of current gross wage)
- joint taxation of married couple will finish
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2. CORPORATE INCOME TAX
Reducing of rates:
• 21 % for year 2008
• 20 % for year 2009
• 19 % for year 2010
Today: 24 %
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Spain
Ireland
Malta
Poland
Slovenia
Slovakia
Sweden
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3. PROPERTY TAXES
-
Real Estate Tax
- Tax on land and buildings.
- The tax on land depends on the quality of particular
land, its location and use (several coefficients).
- The tax on buildings is not based on market value but
on physical characteristics.
-
Real Estate Transfer Tax
- Tax is at a fixed rate of 3 % on the tax basis.
4. ROAD TAX
- Imposed only on vehicles used for business purposes.
- Tax rates are assessed as annual fixed rates.
- The tax period for vehicles registered in the Czech
Republic is the calendar year. A tax return must be filed
and tax must be paid by January 31 of the following year.
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5. INHERITANCE AND GIFT TAX
- the tax depends on the price (valuation) of the
inheritance or the gift and on the degree of the family
relationship between the heir / the recipient of a gift
and the testator / the person conferring the gift
(=> progressive rate: 7 – 40 % = different for wife, son,
cousin, uncle …)
- the principle of calculation is the same for both taxes,
the difference is only at the end:
gift tax * 0,5 = inheritance tax
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b) INDIRECT TAXES
1.
Value Added Tax (VAT)
- two rates: 19 % (for most goods and services)
5 % (for certain services and essential goods
food, medications, newspapers, books …)
VAT Exempt (0% VAT)
The following forms of receipts may be numbered among the receipts
exempt from VAT:
- Postal services
- Broadcasting services - radio and television
- Financial institutions (banks, insurance companies)
- Health services
- Welfare services
- Non-profit making institutions
- increasing of the reduced rate 5 % to 9 %
- basic rate stays: 19 %
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2.
ExciseTaxes
Wine Tax
Beer Tax
Spirit Tax
Tobacco and Tobacco Products Tax
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Other features of public finances reform:
MATERNITY BENEFITS
This benefit will be paid out for 28 weeks to married and also to
lonely mothers and 37 weeks after the childbirth of twins,
triplets, quadruplets …
Today: 37 weeks after childbirth also to lonely mothers.
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BIRTH GRANT
Fixed amount according to the sequence of children:
• 1st child: 15 000 CZK (≈ 715 $)
• 2nd and next child: 13 000 CZK (≈ 620 $)
Today: 17 760 CZK (≈ 850 $)
SCHOOL BENEFIT (books, pencils, …)
1 000 CZK for new-boys
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Human Resource
Management
Personal Management
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„People are our
greatest asset“
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Which activities include personal
management?
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… activities:
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Manpower planning
Recruitment, selection and placement
Job evaluation, appraisal, merit rating
Promotion, transfer, dismissal of people
Training and retraining, career development
Reward system
Conditions of employment, personal affairs
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Role of personal department in
the organisation
= management of changes in a structure and a
quality of human resources in accordance with
needs of economic and social background and
also requirements of the employees
- includes managerial functions selection,
deployment and management of employees
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1. Manpower planning
The objective to find out requirement (lack) of employees,
external cooperation (if needed) for the future activities
of the organization.
There are four dimensions:
professional factor – job description
– which of the professional category of employees is
needed,
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Manpower planning
Job description:

document specifying the objectives of a job,
the work to be performed,
the responsilibilities involved,
the skills needed,
the relationship of the job to other jobs,
working conditions …
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Manpower planning
2. job specification (man qualification)
– written description of special qualification
level (rank) for a given profession
(experience, education, special skills,
other requirements)
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Manpower planning
3. time factor – when the requirement of this
profession in a qualification structure,
4. organisational factor – in which
organisational structure are the employees
needed.
RESULT - plan of employees
= manpower plan
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Manpower plan
It is a base for:
 employees recruitment,
 regulation of employment (transfer of manpower from
department to other dept.),
 assurance of given qualification or requalification of
groups of employees,
 valuation of cost of wages, social services, increasing
of qualification,
 negotiation with trade (labour) unions about the
collective agreement.
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2. Forms of recruitment

Internal recruitment (selection) – more
effective form than external selection; uses the
information about internal employees
(qualification, motivation). The source of
information is current valuation of employees.

External recruitment (selection) – it is
necessary to find suitable candidates (sources:
schools, universities, job centres, media,
friends).
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Process of recruitment
Job advertisement
SELECTION
- CV, interviews
- adoption, training (on-the-job) and
practical position in the organization
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Recruitment and selection of
employees
Which candidate is suited fot the job.
Equal Employment Opportunity
STEPS:
1) Initial contact with job applicants
2) Application form
3) Employment test
4) Interview by Human Resource Department and Supervisor
5) Reference Evaluation
6) Medical Examination
7) Employment
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3. Job and employee evaluation
- the aim is to know and use qualification of employees,
develop their career, motivate them and make a good
reward system
It is important for:
 valuation of their objectives,
 nomination to higher positions,
 changes in work positions,
 increasing of qualification,
 termination of the job (cutbacks or firing because of
the poor performance).
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4. Performance criteria
of employees
- depend on the job position
 written valuation of an employee work,
 behaviour during the working process (absence etc.),
 personal characteristics,
 prospects for the organisation.
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5. Training and development
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Training
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Retraining
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Forms of training
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On-the-job training = learning by doing
Off-the-job training = classroom training
Management development programs –
job rotation, coaching, assessment center
…
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6. Wage and salary
administration

Compensation - payments of employees
for their work
Do you know the difference between
wage and salary?
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WAGE x SALARY

WAGE – a payment based on calculation of the
number of hours the employee has worked; or the
number of units he or she has produced
The more hours worked, the higher the worker's pay.

SALARY – compensation on time, but the unit of
time is a week, a month or a year instead of merely
an hour
Salaried workers normally receive no pay for extra
hours, they are seldom penalized for time loss.
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7. Employee benefits
and services
Financial benefits other than wages, salaries and
supplementary rewards:
Insurance plans – health and life insurance
Pension plans
Health and safety program
Credits union …
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Job application
1. From the side of applicant
2. From the side of employer
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1.
a) Letter of motivation
- cover letter -
 A "letter of motivation" or cover letter (CL) is
your opportunity to "sell" yourself, i.e.
convince the institution or company that they
need to have you.
 Do not be modest: when applying for a job,
explain clearly why you think you are suited
for the position.
 The goal of a CL is to provide a picture of
your background and goals that will
persuade the admission committee to accept
you.
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Structure of cover letter:
Opening Paragraph
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Identify position you are seeking and what
resource you used to find the opening.
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Indicate that you meet the employer's needs.

Keep the first paragraph short and to the point.
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Structure of cover letter:
Middle Paragraph(s)
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Expand on the purpose of the letter; stress your
strongest points as they relate to the position
you seek.
Communicate specific experiences that
demonstrate your qualifications.
Demonstrate that you know something about the
employer's organization.
You should present yourself as eager and
enthusiastic about your work.
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Structure of cover letter:
Closing Paragraph

Plan of action. Be assertive!! For
example, "I would appreciate the
opportunity to further discuss my
qualifications and the immediate and longterm contribution I could make to your
corporation. Please contact me at (+420)
555 - 5555 at your convenience."
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b) Curriculum vitae
-
-
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Personal information (name, address, phone,
e-mail, date of birth …)
Work experience (firms´ names and their
addresses, branch, your tasks and
responsibilities …)
Education and courses
Personal skills and abilities (languages;
social, organizational, technical, artistic skills …)
Additional information (contact person,
references …)
Enclosures
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2. Job position announcement
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Company (name, address …)
Job title
Responsibilities
Requirements
What company offers
How to answer, contact, deadline
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