Scholarly record

INTANGIBLE ASSETS IN ACCOUNTING AND TAX LEGISLATION IN THE CZECH REPUBLIC

Martina Cernikova, Z. Brabec

Abstract

Intangible assets play an essential role in the property structure of businesses. Technological progress and the use of information and communication technologies greatly change the so-called traditional economy. The current digitized economy is very flexible, global; it works with high-quality information systems and requires new approaches to manage partial business activities. All this, results in the growing importance of intangible assets in businesses and subsequently leads to the concentration of value in these assets. These trends represent new challenges for both accounting and tax legislation governing the area of intangible assets. The aim of this article is to analyse the positron of intangible assets in national and international accounting legislation, as well as, to make a comparison between the accounting and tax legislation (corporate income tax). With a rising proportion of intangible assets on company assets these assets can be used in the context of tax optimization in a greater extent. Therefore, not only the requirements of the Czech income tax law was studied but also the also the tax savings connected with the amortization of intangible assets. The role of amortization of intangible assets is analyzed both from the perspective of a sole proprietor and a company. The methods of analysis, comparison, induction and deduction are used in the article.

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