International Tax Systems
FP-FmdsPAcad. year: 2017/2018
Tax Systems. International Taxation of Incomes. Harmonization of Tax Systems in the EU – area of direct taxes, area of indirect taxes, reflexion of EU legal regulations in Czech law. Optimization of the tax burden in the context of international taxation. International Tax Planning. Transfer pricing.
Learning outcomes of the course unit
Knowledge: The student is able to describe current issues and problems connected to tax systems (their establishment, shaping, changes and factors that determine the tax system), they know the legal norms regulating the international taxation of income (the norms of international, EU and domestic law), they can describe the process of international tax planning and determine the tax liability of a tax resident of the Czech Republic with income from abroad and of a tax resident of the Czech Republic with income from sources on the territory of the Czech Republic as well as in more complicated cases (including completing the relevant tax return or report).
Skills: The student is able to comprehensively evaluate the current state and anticipated future developments in the tax field, apply legal norms regulating the international taxation of income, propose steps leading to international tax optimisation, identify risks in the international taxation of income and propose steps toward their elimination, determine the tax liability of tax residents of the Czech Republic receiving various categories of income from abroad, as well as the tax liabilities of tax non-residents of the Czech Republic receiving various categories of income from sources on the territory of the Czech Republic (including completing the relevant tax returns and/or reports).
Abilities: The student can independently solve tasks, the aim of which is international tax optimisation, comprehensively and convincingly convey information concerning the possibilities of international tax optimisation, possible risks and means of their elimination and objectively and rationally justify opinions with reference to the relevant legislation.
Basic knowledge of international taxation of income.
Recommended optional programme components
Recommended or required reading
NERUDOVÁ, Danuše. Harmonizace daňových systémů zemí Evropské unie. 3., přeprac. a rozš. vyd. Praha: Wolters Kluwer Česká republika, 2011, 319 s. ISBN 978-80-7357-695-0. (CS)
Helminem, M. EU Tax Law – Direct Taxation. IBFD : Amsterdam. 406 p. ISBN 978-90-8722-058-7. (EN)
Rylová, V. Mezinárodní dvojí zdanění. 3. vyd. Olomouc : ANAG, 2009. 423 s. ISBN 978-80-7263-511-5. (CS)
Výbor OECD pro fiskální záležitosti. Modelová smlouva o zamezení dvojího zdanění příjmů a majetku. Stručná verze. 1. vyd. Překlad Danuše Nerudová a Kristýna Šimáčková. Praha : Wolters Kluwer ČR, a. s. 431 s. ISBN 978-80-7357-480-2. (CS)
LANG, M. et al. (eds.) Introduction to European Tax Law on Direct Taxation. 2nd ed. Wien: Linde. 223 pgs. ISBN 978-3-7073-1764-0 (EN) (EN)
LANG, M. Introduction to the Law of Double Taxation Conventions. 1st ed. Wien : Linde, 2010. 222 pgs. ISBN 978-3-7073-1714-5 (EN) (EN)
SOJKA, Vlastimil. Mezinárodní zdanění příjmů: smlouvy o zamezení dvojího zdanění a zákon o daních z příjmů. 3., aktualiz. a dopl. vyd. Praha: Wolters Kluwer Česká republika, 2013, 355 s. ISBN 978-80-7478-035-6. (CS)
ŠIROKÝ, Jan. Daně v Evropské unii: daňové systémy všech 28 členských států EU, legislativní základy daňové harmonizace včetně judikátů SD, odraz ekonomické krize v daňové politice EU, zdanění finančního sektoru. 6., aktualiz. a přeprac. vyd. včetně CD. Praha: Linde Praha, 2013, 386 s. ISBN 978-80-7201-925-0 (CS)
Planned learning activities and teaching methods
The lectures are focused on the introduction of the subject matter as a whole (see the course curriculum). The seminars are focused on practical mastery of the subject presented in lectures with an emphasis on solving complex problems in the international taxation of income (including filling in of tax returns).
Assesment methods and criteria linked to learning outcomes
The course is completed with a credit and an exam.
The credit is conditioned by:
a) Active participation at the seminars.
b) Passing of two control credit tests (examples); it is necessary to gain at least 50 % in each credit test.
- 1st test: max. 15 points (70 minutes)
- 2nd test: max. 15 points (70 minutes)
The credit week is reserved for the term of remedial credit tests.
Examination (written) focused on demonstration of the theoretical knowledge gained (ten open questions – max. 40 points; 4 points per question). (75 minutes).
The exam is classified according to the ECTS scale.
The final evaluation of the course is influenced by work during the semester (see below).
Maximum possible points in total: 70 points
- credit tests: max. 30 points
- exam test: max. 40 points.
Language of instruction
1. Tax systems and their development – basic definitions, the significance, current state and developing trends, determinants of the tax system, classification and types of tax in contemporary tax systems, benchmarking tax systems.
2. Comparison of states from the perspective of their tax systems, tax competition, tax coordination, tax reforms and their classification, establishing ‘modern’ tax systems, fiscal termites.
3. International taxation of incomes – introduction to the issues, legal regulation, agreements on avoidance of double taxation, their classification, structure, objectives applicability and interpretation.
4. Application of agreements on avoidance of double taxation (Art. 1 – Art. 7 MS OECD).
5. Application of agreements on avoidance of double taxation (regulations for taxing active and passive incomes).
6. Application of agreements on avoidance of double taxation – additional clauses in agreements on avoidance of double taxation and their influence on solving tax issues (prohibition of discrimination, exchange of information, resolving cases by mutual agreement, MFN clauses, mixed provisions).
7. EU tax law – introduction to issues (the norms of primary tax law in the EU, determinants of development in the tax field in the EU, EU objectives and tax policy, EU bodies and their role in the tax field).
8. EU tax law EU – EU secondary legislation (directive removing obstacles, directive deepening cooperation and adjustment of social insurance).
9. EU tax law – indirect taxes (excise taxes – excise and energy taxes and their reflection in the Czech legal order).
10. International tax planning and optimisation – describing basic concepts, boundaries and limits, activity of international organisations (BEPS, etc.).
11. International tax planning and optimisation – the concept of international tax planning, profit drivers, approaches to the creation of international tax strategy, key areas in international tax planning (e.g. the creation of holding structures, management of intangible assets), tax paradises (classification, their use).
12. Transfer pricing – describing basic concepts, regulation in international, EU and domestic law, methods for establishing transfer prices, etc.
13. Selected issues from the international taxation of income (the rule of low market capitalisation, reclassification of interest, developments in case-law, etc.).
The aim of the course is to make students familiar with current trends in the area of international tax systems. Emphasis will be placed on describing the situation in the European Union. As future tax experts, the students will be provided with an overview of the possibilities and difficulties in international tax planning and optimization.
Specification of controlled education, way of implementation and compensation for absences
Attendance at lectures is not compulsory. Attendance in seminars is compulsory and active participation on the part of the students is required. Excluding seminars set for the credit tests one absence of a student is tolerated.