1 - our system (1. 1. 1993): A) direct taxes: 1. income taxes, 2. real estate tax, 3. real estate-transfer tax, inheritance tax, gift tax, 4. road tax;

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- our system (1. 1. 1993):

A) direct taxes:1. income taxes, 2. real estate tax, 3. real estate-transfer tax, inheritance tax, gift tax,4. road tax;

B) indirect taxes:1. value added tax, 2. excise taxes, 3. tax for environment (it hasn´t so far the executive law and isn´t levied).

System of taxes in the Czech Republic

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Direct taxes:

- in competence of tax offices

(they fall within the Ministry of Finance)

Indirect taxes and customs:

- in competence of customs offices

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Main features of public finances reform - taxes:

a) Direct taxes

1. NATURAL PERSON INCOME TAX

Today (until 31.12.2007):

Tax base Tax base TaxTax

0 – 0 – 10 100 CZK10 100 CZK≈ ≈ (0 – 480 UDS)(0 – 480 UDS)

12 %12 %

10 10110 101 – – 18 200 CZK18 200 CZK≈ ≈ (480 – 870 USD)(480 – 870 USD)

1 212 + 19 1 212 + 19 % of base exceeding 10% of base exceeding 10 100 100 C CZZKK≈ ≈ (58 USD + 19 % of base exceeding 480 UDS)(58 USD + 19 % of base exceeding 480 UDS)

18 20118 201 – – 27 600 CZK27 600 CZK≈ ≈ (870 – 1 315 USD)(870 – 1 315 USD)

2 751 + 2 751 + 25 % of base exceeding 25 % of base exceeding 18 20018 200 C CZZKK≈ ≈ (131 USD + 25 % of base exceeding 870 USD)(131 USD + 25 % of base exceeding 870 USD)

27 60127 601 and more and more CZK CZK≈ ≈ (1 315 USD and more USD)(1 315 USD and more USD)

5 101 + 5 101 + 32 % of base exceeding 32 % of base exceeding 27 60027 600 C CZZKK≈ ≈ (243 USD + 32 % of base exceeding 1 315 USD)(243 USD + 32 % of base exceeding 1 315 USD)

Tax base = gross wage – insurance (8 % social insurance; 4,5 % health insurance)

An employer must pay for each employee 26 % social insurance and 9 % health insurance.

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- only one rate: 15 %

- levy from „super-gross wage“, i. e. gross wage + social payments paid by employer (it corresponds to 20,25 % of current gross wage)

- joint taxation of married couple will finish

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2. CORPORATE INCOME TAX

Reducing of rates:• 21 % for year 2008• 20 % for year 2009• 19 % for year 2010 Today: 24 %

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Spain

Malta

Slovenia

Sweden

Ireland

Slovakia

Poland

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3. PROPERTY TAXES

- Real Estate Tax- Tax on land and buildings.

- The tax on land depends on the quality of particular land, its location and use (several

coefficients). - The tax on buildings is not based on market value but

on physical characteristics.

- Real Estate Transfer Tax- Tax is at a fixed rate of 3 % on the tax basis.

4. ROAD TAX

- Imposed only on vehicles used for business purposes.- Tax rates are assessed as annual fixed rates. - The tax period for vehicles registered in the Czech

Republic is the calendar year. A tax return must be filed

and tax must be paid by January 31 of the following year.

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5. INHERITANCE AND GIFT TAX

- the tax depends on the price (valuation) of the inheritance or the gift and on the degree of the family relationship between the heir / the recipient of a gift and the testator / the person conferring the gift

(=> progressive rate: 7 – 40 % = different for wife, son, cousin, uncle …)

- the principle of calculation is the same for both taxes, the difference is only at the end:

gift tax * 0,5 = inheritance tax

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b) INDIRECT TAXES

1. Value Added Tax (VAT) - two rates: 19 % (for most goods and services) 5 % (for certain services and essential goods

food, medications, newspapers, books …)

VAT Exempt (0% VAT)The following forms of receipts may be numbered among the receipts

exempt from VAT:

- Postal services - Broadcasting services - radio and television - Financial institutions (banks, insurance companies) - Health services - Welfare services - Non-profit making institutions

- increasing of the reduced rate 5 % to 9 %- basic rate stays: 19 %

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2. ExciseTaxes

Wine TaxBeer TaxSpirit Tax Tobacco and Tobacco Products Tax

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Other features of public finances reform:

MATERNITY BENEFITS

This benefit will be paid out for 28 weeks to married and also to lonely mothers and 37 weeks after the childbirth of twins, triplets, quadruplets …

Today: 37 weeks after childbirth also to lonely mothers.

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BIRTH GRANT

Fixed amount according to the sequence of children: • 1st child: 15 000 CZK (≈ 715 $)• 2nd and next child: 13 000 CZK (≈ 620 $)

Today: 17 760 CZK (≈ 850 $)

SCHOOL BENEFIT (books, pencils, …)

1 000 CZK for new-boys

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Human Resource Human Resource ManagementManagement

Personal ManagementPersonal Management

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„„People are our People are our greatest asset“greatest asset“

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Which activities include personal Which activities include personal management?management?

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… … activities:activities:

Manpower planningManpower planning Recruitment, selection and placementRecruitment, selection and placement Job evaluationJob evaluation, a, appraisal, merit ratingppraisal, merit rating Promotion, transfer, dismissal of peoplePromotion, transfer, dismissal of people Training and retraining, career developmentTraining and retraining, career development Reward systReward systeemm Conditions of employment, personConditions of employment, personaal affairsl affairs

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Role of personal department in Role of personal department in the organisationthe organisation

= management of changes in a structure and a quality of human resources in accordance with needs of economic and social background and also requirements of the employees

- includes managerial functions selection, deployment and management of employees

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1. Manpower planning1. Manpower planning

The objective to find out requirement (lack) of employees, external cooperation (if needed) for the future activities of the organization.

There are four dimensions:

professional factor – job description

– which of the professional category of employees is needed,

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Job description:Job description:

document specifying the objectives of a job, document specifying the objectives of a job,

the work to be performed, the work to be performed,

the responsilibilities involved, the responsilibilities involved,

the skills needed, the skills needed,

the relationship of the job to other jobs, the relationship of the job to other jobs,

working conditionsworking conditions … …

Manpower planningManpower planning

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2. job specification (man qualification)

– written description of special qualification level (rank) for a given profession (experience, education, special skills, other requirements)

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3. time factor – when the requirement of this profession in a qualification structure,

4. organisational factor – in which organisational structure are the employees needed.

RESULT - plan of employees

= manpower plan

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Manpower planManpower planIt is a base for:

employees recruitment,

regulation of employment (transfer of manpower from

department to other dept.),

assurance of given qualification or requalification of

groups of employees,

valuation of cost of wages, social services, increasing

of qualification,

negotiation with trade (labour) unions about the collective agreement.

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2. Forms of recruitment2. Forms of recruitment

Internal recruitment (selection) – more effective form than external selection; uses the information about internal employees (qualification, motivation). The source of information is current valuation of employees.

External recruitment (selection) – it is necessary to find suitable candidates (sources: schools, universities, job centres, media, friends).

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Process of recruitmentProcess of recruitment

Job advertisement

SELECTION

- CV, interviews

- adoption, training (on-the-job) and practical position in the organization

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Recruitment and selection of Recruitment and selection of employeesemployees

Which candidate is suited fot the job.

Equal Employment Opportunity

STEPS:

1) Initial contact with job applicants

2) Application form

3) Employment test

4) Interview by Human Resource Department and Supervisor

5) Reference Evaluation

6) Medical Examination

7) Employment

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3. Job and employee evaluation3. Job and employee evaluation

- the aim is to know and use qualification of employees, develop their career, motivate them and make a good reward system

It is important for:

valuation of their objectives,

nomination to higher positions,

changes in work positions,

increasing of qualification,

termination of the job (cutbacks or firing because of

the poor performance).

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4. 4. Performance criteria Performance criteria of employeesof employees

- depend on the job position

written valuation of an employee work,

behaviour during the working process (absence etc.),

personal characteristics,

prospects for the organisation.

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5. Training and development5. Training and development

TrainingTraining

RetrainingRetraining

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Forms of trainingForms of training

OnOn--thethe--job training job training = = learning by doinglearning by doing OffOff--thethe--job training job training == clasclasssroom trainiroom traininngg Management development programs – Management development programs –

job rotation, coaching, assessment centerjob rotation, coaching, assessment center ……

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6. Wage and salary 6. Wage and salary administrationadministration

Compensation - payments of employees Compensation - payments of employees for their workfor their work

Do you know the difference between Do you know the difference between wage and salary?wage and salary?

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WAGE x SALARYWAGE x SALARY WAGEWAGE – a payment based on calculation of the – a payment based on calculation of the

number of hoursnumber of hours the employee has worked the employee has worked;; or the or the number of unitsnumber of units he o he orr she has produced she has produced

The more hours worked, the higher the worker's pay. The more hours worked, the higher the worker's pay.

SALARYSALARY – compensation on time, but the unit of – compensation on time, but the unit of time is time is a week, a montha week, a month or a year instead of merely or a year instead of merely an houran hour

Salaried workers normally receive no pay for extra hours, Salaried workers normally receive no pay for extra hours,

they are seldom penalized for time loss.they are seldom penalized for time loss.

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7. Employee benefits 7. Employee benefits and servicesand services

Financial benefits other than wages, salaries and supplementary rewards:

Insurance plans – health and life insurance

Pension plans

Health and safety program

Credits union …

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Job application

1. From the side of applicant

2. From the side of employer

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1.1. a) a) Letter of motivation Letter of motivation - cover letter - - cover letter -

A "letter of motivation" or cover letter (CL) is your opportunity to "sell" yourself, i.e. convince the institution or company that they need to have you.

Do not be modest: when applying for a job, explain clearly why you think you are suited for the position.

The goal of a CL is to provide a picture of your background and goals that will persuade the admission committee to accept you.

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Structure of cover letter:Structure of cover letter:

Opening Paragraph

Identify position you are seeking and what Identify position you are seeking and what resource you used to find the opening.resource you used to find the opening.

Indicate that you meet the employer's needs.Indicate that you meet the employer's needs.

Keep the first paragraph short and to the point.Keep the first paragraph short and to the point.

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Middle Paragraph(s)

Expand on the purpose of the letter; stress your strongest points as they relate to the position you seek.

Communicate specific experiences that demonstrate your qualifications.

Demonstrate that you know something about the employer's organization.

You should present yourself as eager and enthusiastic about your work.

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Closing Paragraph

Plan of action. Be assertive!! For Plan of action. Be assertive!! For example, "I would appreciate the example, "I would appreciate the opportunity to further discuss my opportunity to further discuss my qualifications and the immediate and long-qualifications and the immediate and long-term contribution I could make to your term contribution I could make to your corporation. Please contact me at (+420) corporation. Please contact me at (+420) 555 - 5555 at your convenience."555 - 5555 at your convenience."

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b) b) Curriculum vitaeCurriculum vitae- Personal informationPersonal information (name, address, phone, (name, address, phone,

e-mail, date of birth …)e-mail, date of birth …)- Work experienceWork experience (firms´ names and their (firms´ names and their

addresses, branch, your tasks and addresses, branch, your tasks and responsibilities …)responsibilities …)

- Education and courses Education and courses - Personal skills and abilitiesPersonal skills and abilities (languages; (languages;

social, organizational, technical, artistic skills …)social, organizational, technical, artistic skills …)- Additional informationAdditional information (contact person, (contact person,

references …)references …)- Enclosures Enclosures

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2.2. Job position announcementJob position announcement

CompanyCompany (name, address …) (name, address …) Job titleJob title ResponsibilitiesResponsibilities RequirementsRequirements What company offersWhat company offers How to answer, contact, How to answer, contact, deadlinedeadline

Documents

1 - our system (1. 1. 1993): A) direct taxes: 1. income taxes, 2. real estate tax, 3. real estate-transfer tax, inheritance tax, gift tax, 4. road tax;