The ruling coalition, ODS (Civic Democrats), KDU-CSL (Christian Democrats) and Greens, agreed on planed reforms. The new draft lowers the corporate tax from current 24% to 21% for 2008, 20% in 2009 and 19% in 2010. The personal income tax should decline to 15% in 2008 and 12.5% in 2009, but it should be counted from super-gross salary (wage + social security payments).
The proposals have to be passed by the Parliament. The coalition has 100 from 200 votes. In our view the reforms have chance to be supported by two former opposition MPs, whose proposals for changes has been reflected in the reforms, thus giving ruling coalition thin margin for approval in the Parliament. The outcome should be known by the end of August or in September at latest, depending on the pace of legal proceedings in the Parliament.