Taxation - Czech Republic (TX-CZE) : Syllabus and Study Guide

December 2018
and
June 2019
Taxation –
Czech Republic
(TX-CZE)
Syllabus and study guide

Taxation - Czech Republic (TX-CZE)
Guide to structure of the Detailed syllabus
syllabus and study guide This shows the breakdown of the main
capabilities (sections) of the syllabus
Overall aim of the syllabus into subject areas. This is the blueprint
for the detailed study guide.
This explains briefly the overall objective
of the syllabus and indicates in the Approach to examining the syllabus
broadest sense the capabilities to be
developed within the exam. This section briefly explains the
structure of the examination and how it
Relational diagram linking Taxation - is assessed.
Czech Republic (TX-CZE) with other
ACCA exams Study Guide
This diagram shows direct and indirect This is the main document that students,
links between this exam and other education and content providers should
exams preceding or following it. It use as the basis of their studies,
indicates where you are expected to instruction and materials. Examinations
have underpinning knowledge and will be based on the detail of the study
where it would be useful to review guide which comprehensively identifies
previous learning before undertaking what could be assessed in any
study. examination session. The study guide is
a precise reflection and breakdown of
Main capabilities the syllabus. It is divided into sections
based on the main capabilities identified
The aim of the syllabus is broken down in the syllabus. These sections are
into several main capabilities which divided into subject areas which relate to
divide the syllabus and study guide into the sub-capabilities included in the
discrete sections. detailed syllabus. Subject areas are
broken down into sub-headings which
Relational diagram of the main describe the detailed outcomes that
capabilities could be assessed in examinations.
These outcomes are described using
This diagram illustrates the flows and verbs indicating what exams may
links between the main capabilities require students to demonstrate, and the
(sections) of the syllabus and should be broad intellectual level at which these
used as an aid to planning teaching and may need to be demonstrated
learning in a structured way. (*see intellectual levels below).
Syllabus rationale
This is a narrative explaining how the

syllabus is structured and how the main
capabilities are linked. The rationale
also explains in further detail what the
examination intends to assess and why.
© ACCA 2018-2019 All rights reserved.

Intellectual Levels Learning Hours and

Education Recognition
The syllabus is designed to
progressively broaden and deepen the The ACCA qualification does not
knowledge, skills and professional prescribe or recommend any particular
values demonstrated by the student on number of learning hours for
their way through the qualification. examinations because study and
learning patterns and styles vary greatly
The specific capabilities within the between people and organisations. This
detailed syllabuses and study guides are also recognises the wide diversity of
assessed at one of three intellectual or personal, professional and educational
cognitive levels: circumstances in which ACCA students
find themselves.
Level 1: Knowledge and
comprehension As a member of the International
Level 2: Application and analysis Federation of Accountants, ACCA seeks
Level 3: Synthesis and evaluation to enhance the education recognition of
its qualification on both national and
Very broadly, these intellectual levels international education frameworks, and
relate to the three cognitive levels at with educational authorities and partners
which the Applied Knowledge,
globally. In doing so, ACCA aims to
the Applied Skills and the Strategic
ensure that its qualifications are
Professional exams
recognised and valued by governments,
are assessed.
regulatory authorities and employers
across all sectors. To this end, ACCA
Each subject area in the detailed study
guide included in this document is given qualifications are currently recognised
a 1, 2, or 3 superscript, denoting on the education frameworks in several
intellectual level, marked at the end of countries. Please refer to your national
each relevant line. This gives an education framework regulator for
indication of the intellectual depth at further information.
which an area could be assessed within
the examination. However, while level 1 Each syllabus contains between 23 and
broadly equates with Applied 35 main subject area headings
Knowledge, level 2 equates to Applied depending on the nature of the subject
Skills and level 3 to Strategic and how these areas have been broken
Professional, some lower level skills can down.
continue to be assessed as the student
progresses through each level. This
reflects that at each stage of study there
will be a requirement to broaden, as well
as deepen capabilities. It is also
possible that occasionally some higher
level capabilities may be assessed at
lower levels.

Guide to ACCA information and exhibits are available

within the examination. Strategic
Examination Structure Business leader is an examination
The structure of examinations varies based on one main business scenario
within and between levels. which involves candidates completing
several tasks within which additional
Applied Knowledge material may be introduced. All
questions are compulsory and each
The Applied Knowledge examinations examination will contain a total of 80
contain 100% compulsory questions to technical marks and 20 Professional
encourage candidates to study across Skills marks. The detail of the structure
the breadth of each syllabus. These are of this exam is described in the Strategic
assessed by a two-hour computer based Business Leader syllabus and study
examination. guide document.
Applied Skills The other Strategic Professional exams

are all of three hours and 15 minutes
The Corporate and Business Law exam duration. All contain two
is a two- hour computer based objective Sections and all questions are
test examination for English and Global. compulsory. These exams all contain
For the format and structure of the four professional marks. The detail of
variant exams, refer to the ‘Approach to the structure of each of these exams is
examining the syllabus’ section below. described in the individual syllabus and
study guide documents.
The other Applied Skills examinations
(PM, TX-UK, FR, AA, and FM) ACCA encourages students to take time
contain a mix of objective and longer to read questions carefully and to plan
type questions with a duration of three answers but once the exam time has
hours for 100 marks.These exams are started, there are no additional
available in computer-based and paper- restrictions as to when candidates may
based formats. Prior to the start of each start writing in their answer books.
exam there will be time allocated for
students to be informed of the exam Time should be taken to ensure that all
instructions. For the format and structure the information and exam requirements
of the TX-CZE variant exam, refer to the are properly read and understood.
‘Approach to examining the syllabus’
section below. The pass mark for all ACCA
Qualification examinations is 50%.
Strategic Professional
Strategic Business Leader is ACCA’s

case study examination at the Strategic
Professional level and is examined as a
closed book exam of four hours,
including reading, planning and
reflection time which can be used
flexibly within the examination. There is
no pre-seen information and all exam
related material, including case

Guide to ACCA Regulations issued or legislation passed

in accordance with the above dates may
Examination Assessment be examinable even if the effective date
is in the future.
ACCA reserves the right to examine any
learning outcome contained within the
The term issued or passed relates to
study guide at any examination session.
when regulations or legislation has been
This includes knowledge, techniques,
formally approved.
principles, theories, and concepts as
specified. For the financial accounting, The term effective relates to when
audit and assurance, law and tax exams regulatiosn or legislation must be
except where indicated otherwise, applied to an entity transactions and
ACCA will publish examinable business practices.
documents once a year to indicate
exactly what regulations and legislation The study guide offers more detailed
could potentially be assessed within guidance on the depth and level at
identified examination sessions. which the examinable documents will be
examined. The study guide should
For most examinations (not tax), therefore be read in conjunction with the
regulations issued or legislation passed
examinable documents list.
on or before 31 August annually, will be
examinable from 1 September of the
following year to 31 August of the year
after that. Please refer to the
examinable documents for the
examination (where relevant) for further
information.
For CZE tax papers, December and

June examinations will be based on
legislation passed before the previous
31 May. I.e. December 2018 and June
2019 papers will be based on legislation
in force at 31 May 2018.

Taxation – Czech Republic (TX-CZE) syllabus and

study guide
This syllabus and study guide is designed to help with planning study and to provide
detailed information on what could be assessed in any examination session.
Aim
To develop knowledge and skills relating to

the tax system of the Czech Republic, as Syllabus
applicable to individuals and companies.
Taxation –
Relational diagram linking Czech Republic
Taxation – Czech Republic (TX- (TX-CZE)
CZE) with other ACCA exams
This diagram shows direct and indirect
links between this exam and other
exams preceding or following it.

Main capabilities
On successful completion of this exam, candidates should be able to:

A Explain the operation and scope of the Czech tax system and the obligations of
tax payers and/or their agents and the implications of non-compliance
B Explain and compute the income tax liabilities of individuals
C Explain and compute the corporate income tax liabilities of companies
D Explain and compute the effects of value added tax on incorporated and
unincorporated businesses
Relational diagram of the main capabilities
The Czech tax system (A)
Income tax liabilities & social Corporate income tax

security and health care liabilities (C)
contributions (B)
VAT (D)
This diagram illustrates the flows and links between the main capabilities (sections)
of the syllabus and should be used as an aid to planning teaching and learning in a
structured way.

Rationale
This syllabus for Taxation – Czech

Republic (TX-CZE) introduces
candidates to the subject of taxation and
provides the core knowledge of the
underlying principles and major
technical areas of taxation, as they
affect the activities of individuals and
businesses.
Candidates are introduced to the

rationale behind and the functions of the
tax system. The syllabus then considers
the separate taxes that an accountant
would need to have a detailed
knowledge of, such as income tax from
self-employment, employment and
investments; the corporate income tax
liability of companies; the social security
and health care contribution liabilities of
both employed and self-employed
persons and the value added tax liability
of businesses.
Having covered the core areas of the

basic taxes, the candidate should be
able to compute tax liabilities, explain
the basis of their calculations, apply tax
planning techniques for individuals and
companies and identify the compliance
issues for each major tax through a
variety of business and personal
scenarios and situations.

Detailed syllabus 6. Property, rental, investment and

other income
A. The Czech tax system 7. The comprehensive computation of

taxable income and income tax
1. The overall function and purpose of liability
taxation in a modern economy and
the constitutional framework.
8. The use of exemptions and reliefs in
2. The tax regulatory framework deferring and minimising income tax
liabilities
3. The systems for self-assessment,
the making of returns and other 9. Determination of tax residence and
reporting obligations international aspects
4. The time limits for the submission of C Corporate income tax liabilities
information, claims and payment of
tax, including payments on account 1. The scope of corporate income tax
5. The procedures relating to enquiries, 2. Profits chargeable to corporate

rulings, appeals and disputes income tax
6. Sanctions for non-compliance 3. The comprehensive computation of

corporate income tax liability
B Individual income tax liabilities &
social security and health care 4. The use of exemptions and reliefs in
contributions deferring and minimising corporate
income tax liabilities
1. The scope of individual income tax &
social security and health care 5. Determination of tax residence and
contributions international aspect
2. Income from employment D Value added tax
3. Contributions for employed persons, 1. The scope of value added tax (VAT)
liabilities of employees and
employers
2. The VAT registration requirements
4. Income from self-employment
(business and professional income) 3. The computation of VAT liabilities
5. Contributions for self-employed 4. Documentation requirements and

persons compliance

Approach to examining the syllabus

For the December 2018 session, the syllabus will be assessed by a three-hour 15
minute paper-based exam.
For the June 2019 session, the syllabus will be assessed by a three-hour computer-
based exam.
The exam will be predominantly computational and all questions are compulsory.
Section A of the exam comprises 15 multiple choice questions of 2 marks each.
Section B of the exam comprises four 10 mark questions and two 15 mark
questions.
The two 15 mark questions will focus on individual income tax (syllabus area B) and
corporate income tax (syllabus area C).
The section A questions and the other questions in section B can cover any areas of
the syllabus.

Study Guide a) Describe the tax registration

procedure.[2]
A The Czech Tax system b) Explain and apply the features of

the assessment including the self-
assessment system and the tax
1. The overall function and purpose returns filing procedures for
of taxation in a modern economy individuals.[2]
and the constitutional framework
c) Explain and apply the features of
a) Describe the purpose (economic,
assessment including the self-
social etc) of , and the constitutional
assessment system and the tax
framework and limits.[2]
returns filing procedures for
b) Identify the different types of companies.[2]
taxes.[2]
4. The time limits for the
c) Explain the difference between submission of information,
direct and indirect taxation.[2] claims and payment of tax,
including payments on account
2. The tax regulatory framework
a) Recognise the time limits that apply
a) Describe the overall structure of the to the filing of returns and the
Czech tax system.[2] making of claims.[2]
b) State the different sources of b) Recognise the due dates for the
revenue law.[2] payment of tax and explain how
taxes are paid.[2]
c) Explain and apply the basic
principles of tax procedure.[2] c) Compute tax prepayments and
state the due dates for making such
d) Explain and apply the rules on the tax prepayments.[2]
determination of competent
authority.[2] d) Explain the system of year end
(annual) clearing of tax and
e) Appreciate the interaction of the calculate the year clearing
Czech tax system with that of other tax payable.[2]
tax jurisdictions.[2]
e) Explain the payroll tax system as
f) Explain the difference between tax applied to employees.[2]
avoidance and tax evasion.[1]
f) Explain the relevant procedures for
g) Explain the need for an ethical and tax collection by final withholding
professional approach.[2] and of withholding as a prepayment
of tax due including relevant
3. The systems for self-assessment, deadlines and competent
the making of returns and other authorities.[2]
reporting obligations
g) List the information and records that

taxpayers need to retain for tax B Individual income tax

purposes.[2] liabilities & social security
and health care
Excluded topics contributions
Procedure for the recovery of tax 1. The scope of individual income
claims tax & social security and health
care contributions
The internal organisation and
functions determination of the tax a) Describe the scope of individual
administration bodies income tax.[2]
5. The procedures relating to b) Recognise how gifts and assets by

enquiries, rulings, appeals and descent are treated within income
disputes tax.[2]
a) Explain the available remedial c) Define when an accounting period

instruments and relevant and a tax period starts and
procedures including deadlines and finishes.[2]
competent authorities.[2]
d) Explain how the tax residence of an
b) Explain the tax audit procedures individual is determined.[2]
including the rights and obligations
of a taxpayer.[2] e) Recognise the income that is
taxable in the case of tax residents
c) Explain the application of the statute and tax non-residents.[2]
of limitation.[2]
f) Explain the Czech tax treatment and
d) Explain the procedures relevant assessment of income from sources
when applying for a ruling in the in the Czech Republic of non-
area of individual or corporate residents earned through a
income tax.[2] permanent establishment in the
Czech Republic or through other
e) Explain the procedures for waiver of means.[2]
payment of penalties and interest.[2]
g) Explain who is liable to pay social
6. Sanctions for non-compliance security and health care
contributions and in what
a) State the circumstances in which a circumstances.[2]
penalty or interest can be charged
in the case of income tax and Excluded topics
VAT.[2]
The EU rules for social coordination
b) Calculate interest on overdue tax
and the penalties that can be
charged.[2]

2. Income from employment 4. Income from self-employment

(business and professional
a) Identify the income which falls within income)
this category and explain how the
partial tax base is calculated.[2] a) Identify the income which falls within
this category and explain how the
b) Recognise the allowable partial tax base is calculated.[2]
deductions.[2]
b) Recognise the expenditures that are
c) Distinguish between the benefits in allowable in computing the partial
kind which have to be taken into tax base or loss.[2]
account and those which are
exempt.[2] c) Depreciation allowances.[2]
d) Explain how taxable benefits in kind i) Define depreciable tangible and

are assessed and calculate relevant intangible assets.
amounts.[2]
ii) State who is eligible to claim
e) State the factors that determine depreciation allowances, when
whether an engagement is treated they can be claimed, and under
as an employment or self- what conditions.
employment.[2]
iii) Compute depreciation
f) Describe the situations in which the allowances using the straight line
economic employment concept is and accelerated methods.
used.[2]
d) Distinguish the treatment of
g) Explain how directors’ and statutory operational and financial leases and
representatives' (jednatel) fees are calculate relevant tax deductible
taxed.[2] amounts.[2]
h) Compare the effect of alternative e) Relief for losses.[2]

remuneration packages.[2]
i) Explain how losses can be
3. Contributions for employed claimed against taxable income
persons, liabilities of employees and calculate relevant amounts.
and employers
ii) Explain how losses can be
a) Calculate the assessment base.[2] carried forward.
b) Calculate the employer’s and the f) Partnerships and limited liability

employee’s share of social security partnerships.[2]
and health care contributions.[2]
i) Explain how a partnership is
c) State the procedures and deadlines assessed to tax.
for the payment of contributions.[2]
ii) Distinguish between the tax
treatment of a general

partnership and a partnership 7. The comprehensive computation

with one or more limited of taxable income and income tax
partners. liability
iii) Allocate assessable profits a) Prepare a basic income tax

among the partners. computation involving different
categories of income.[2]
g) Explain the tax implications arising
from the disposal of a business.[2] b) Recognise the deductions from
partial tax bases and from the total
5. Contributions for self-employed tax base available to individuals.[2]
persons
c) Identify the tax credits deductible in
a) Explain and calculate the computing the tax liability and tax
assessment base.[2] payable.[2]
b) Calculate the social security and d) Identify the income subject to final
health care contributions payable.[2] withholding and calculate the tax
payable.[2]
c) State the procedures and deadlines
for the payment of contributions.[2] e) Identify the income subject to
withholding as a prepayment and
6. Property, rental, investment and calculate the tax withheld.[2]
other income
f) Compute the amount of monthly
a) Identify the income which falls within payroll deductions in the case of
each of these categories and employees.[2]
explain how the partial tax base is
calculated.[2] g) Calculate the Czech income tax on
foreign income, together with any
b) Recognise the allowable deductions available double taxation relief.[2]
in each case.[2]
8. The use of exemptions and reliefs
c) Explain the special treatments for in deferring and minimising
interest income and dividends.[2] income tax liabilities
d) Explain the treatment for rental a) State which income is exempt from
income.[2] income tax.[2]
e) Explain the treatment of the sale of b) Explain and compute the relief for
shares and securities.[2] contributions to pension schemes
and life insurance.[2]
f) Explain the treatment of the sale of
other non-business assets and c) Explain how income can be
property.[2] attributed to a cooperating person.[2]

d) Compare the tax position of a Companies in liquidation

shareholder/owner of a company
with that of a sole trader.[2] Not for profit organisations
9. Determination of tax residence Investment and pension funds,

and international aspects trusts.
a) Explain how the tax residence of an 2. Profits chargeable to corporate

individual is determined.[2] income tax
b) Identify the limited and unlimited tax a) Recognise the adjustments made to
liability of individuals.[2] the accounting profit for the
purpose of calculating the
Excluded topics: corporate tax base.[2]
Share option schemes b) Identify the expenditures which are

generally allowable in calculating
C Corporate income tax the tax-adjusted profit.[2]
liabilities
c) Identify the items which are not tax
1. The scope of corporate income deductible.[2]
tax
d) State the basic principles which
a) Describe the scope of corporate apply to transactions between
income tax.[2] related parties.[2]
b) Define when an accounting and e) Depreciation allowances (as for

taxable period starts and finishes.[2] individual income tax).[2]
c) Explain how the tax residence of a f) Explain the thin capitalisation rules
company is determined.[2] and prepare relevant calculations.[2]
d) Recognise the income that is g) Explain and apply the transfer

taxable in the case of tax resident pricing rules and prepare relevant
and tax non-resident companies calculations.[2]
and how it will be allocated.[2]
h) Explain how foreign income is
e) Define and explain the relevance of assessed.[2]
a permanent establishment.[2]
i) Relief for losses.[2]
f) Explain the tax factors that should
be considered when incorporating a i) Explain how losses can be
business.[2] relieved against total income and
calculate relevant amounts.
Excluded topics
ii) Explain how losses can be
Reorganisations carried forward.

j) Incentives.[2] D Value added tax

i) Explain the incentive available 1. The scope of value added tax
for large scale investment and (VAT)
calculate relevant amounts.
a) Describe the scope of VAT.[2]
ii) Explain the research and
development incentive and b) Explain how the VAT functions when
calculate relevant amounts. goods and/or services are supplied
and/or received to/from Czech
iii) Explain the employment companies to/from EU member
incentives and calculate relevant states and to/from companies in
amounts. other countries.[2]
3. The comprehensive computation c) List the principal reduced rates and

of corporate income tax liability exempt supplies.[2]
a) Recognise the allowances and 2. The VAT registration

credits available to corporations and requirements
calculate relevant amounts.[2]
a) Recognise the circumstances in
b) Identify the income subject to final which a person (individual or legal
withholding and calculate relevant entity) must register for VAT.[2]
amounts.[2]
b) Explain the circumstances of VAT
c) Identify the income subject to registration in the Czech Republic of
withholding as a prepayment and foreign non-established entities.[2]
calculate the tax payable.[2]
c) Explain the advantages of voluntary
d) Explain the taxation of dividends in VAT registration.[2]
the case of related companies.[2]
d) Explain the VAT registration
e) Calculate the Czech income tax of procedure including relevant
foreign income, together with any deadlines.[2]
available double taxation relief.[2]
e) Explain the circumstances in which
4. The use of exemptions and reliefs pre-registration VAT can be
in deferring and minimising recovered.[2]
corporate income tax liabilities
(The use of such exemptions and f) Explain how a person can
reliefs is implicit within all of the deregister for VAT.[2]
above sections 1 to 3 of part C of
the syllabus, concerning g) Explain the Czech VAT implications
corporate income tax) of foreign VAT registration in other
EU member states. [2]
3. The computation of VAT

liabilities

VAT returns and payment of VAT.[2]

a) Explain how VAT is accounted for
and administered.[2] c) Explain notification obligations and
procedures of VAT payers.[2]
b) Explain how the tax point i.e. when
and where goods or services are
supplied, is determined.[2]
c) Explain and apply the principles

regarding the valuation of
supplies.[2]
d) Recognise the circumstances in

which input VAT is non-deductible.[2]
e) Explain and determine VAT

exempted supplies.[2]
f) Explain how the calculation of VAT

liability is affected where a VAT
payer makes exempt supplies.[2]
g) Explain and apply the reverse

charge regime.[2]
h) Explain and apply the

circumstances when the VAT refund
procedure is applied.[2]
i) Calculate the VAT due

to/recoverable from the tax
authorities.[2]
Excluded topics
Special regime for investment gold
Special regime for supply of gold
4. Documentation requirements and

compliance
a) List the information that must be

given on a VAT invoice.[2]
b) State the deadlines for the filing of

Summary of changes to Taxation - Czech Republic (TX-CZE)
ACCA periodically reviews its qualification syllabuses so that they fully meet the
needs of stakeholders such as employers, students, regulatory and advisory bodies
and learning providers.
Table 1 – Additions to TX (CZE)
Section and subject area Syllabus content
Syllabus area D – Value New outcome 2b): Explain the circumstances of

added tax VAT registration in the Czech Republic of foreign
non-established entities.[2]
New outcome 2g): Explain the Czech VAT

implications of foreign VAT registration in other EU
member states.[2]
New outcome 3e): Explain and determine VAT

exempted supplies.[2]
New outcome 3h): Explain and apply the

circumstances when the VAT refund procedure is
applied.[2]

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December 2018

Syllabus and study guide

Guide to structure of the Detailed syllabus

This is a narrative explaining how the

© ACCA 2018-2019 All rights reserved.

Intellectual Levels Learning Hours and

© ACCA 2018-2019 All rights reserved.

Guide to ACCA information and exhibits are available

Applied Skills The other Strategic Professional exams

Strategic Business Leader is ACCA’s

© ACCA 2018-2019 All rights reserved.

Guide to ACCA Regulations issued or legislation passed

For CZE tax papers, December and

© ACCA 2018-2019 All rights reserved.