The Ministry of Finance prepared a new amendment to the real estate acquisition tax act (“REATA”); the amendment was recently presented to the government by the ministry.
The most important change included in the proposed amendment is the alteration of provisions concerning the taxpayer. Currently, in cases of purchases of real estates, the REATA allows the contracting parties to choose whether the taxpayer is the seller, or the purchaser. Until the end of 2013, the seller was always the taxpayer in such cases.
However, in accordance with the amendment, the taxpayer would always be the purchaser. The institute of guarantee for the payment of tax would then be abolished as well.
The sale of shares in real estate companies remains not subject to REATA.
Should you have any questions regarding the issues above, please do not hesitate to contact Jan Lamač, e-mail: email@example.com.