CZECH REPUBLIC Law and Practice Contributed by: Daniela Kozáková, ŠIROKÝ ZRZAVECKÝ, attorneys-at-law
10.5 Trusts A collection of artworks can be placed in trust (placing single pieces may be costly). The allocation of assets to a trust and/or the increase in the assets of a trust by contract or for death are regarded as contributions to a business corporation. In principle, the fund’s profit is currently subject to income tax at a rate of 21% (sub - ject to certain exceptions). In the event of a payout from trust’s profit to a beneficiary, payments must be made first from the fund’s profit and only then from other assets. Generally, in the case of a payout from the profit to a legal entity as a beneficiary, a withhold - ing tax is applied (currently at 15%). There are, how - ever, some exceptions; therefore, the relevant taxa - tion must always be reviewed with respect to each particular case.
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