Economic policy
This section reports on economic policy initiatives of the Czech government, the EU, and other entities that have a direct impact on the competitiveness of the country. It also includes information on economic priorities of the AmCham and other leading associations.
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Spotlight issue
IMF: International Corporate Tax Avoidance: A Review of the Channels, Magnitudes, and Blind Spots: A 1 percentage point larger tax rate differential reduces reported pre-tax profits of an affiliate by 1 percent.
According to a recent IMF working paper on tax avoidance, called International Corporate Tax Avoidance: A Review of the Channels, Magnitudes, and Blind Spots, a 1 percentage point larger tax rate differential reduces reported pre-tax profits of an affiliate by 1 percent. The authors believe that this estimate is larger than the consensus so far and the semi-elasticity has increased over time; a value of around 1.5 applies to the most recent years.
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ING Bank: Czech National Bank in Hiking Mode
As expected, the CNB delivered a 25bp hike on 26 September. However, the market already had high expectations (one additional hike this year and two more next year). As such, today’s press conference in which Governor Rusnok was non-committal disappointed slightly.
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AmCham CZ Workforce Report: Manufacturing: National Employment and Median Wages by Occupation 2011-2017 - analysis
The American Chamber of Commerce in the Czech Republic prepared an update on the workforce in the Czech manufacturing sector. This report focuses on main trends in employment and median wages in six occupational categories (managers, professionals, technicians, clerical workforce, craftsmen and plant, machine operators and assemblers) in the private sector at the national level.
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