We would like to draw your attention to the reporting obligation of taxpayers towards tax administrators by 15 January 2017 in relation to the change in author’s income taxation in 2016.
As of 1 January 2016, author’s income based on the Copyright Act resulting from the creation of a work and artistic performance under Paragraph 6 Section 2(a) of Act on Income Tax and income resulting from the use of artistic performance based on Section 6 Paragraph 4 of Act on Income Tax is preferentially taxed by withholding tax or by two different means depending on the taxpayer’s (author’s) decision and the author’s (non)preference to have their remuneration taxed by withholding tax or non-taxed under the condition that the author concludes a prior written agreement with the payer on non-application of withholding tax.
If you concluded an agreement with an author in 2016 on not withholding tax, you are obliged to report the conclusion of this agreement to the tax authority by 15 January 2017.
