Tax allowance for students continuously preparing for future employment

Name of the instrument - Local language: Nárok na snížení daně poplatníka, který se soustavně připravuje na své budoucí povolání studiem nebo předepsaným výcvikem (do 26 let, v případě doktorského studia do 28 let)
Name of the instrument - English translation: Tax allowance for students continuously preparing for future employment
Country: Czech Republic
Type of instrument: Tax incentive for individuals
Type of entry: Single instrument

Short description: Students continuously preparing for future employment (until 26 or 28 years for a doctoral degree) may deduct their costs for all accredited initial formal education and training programmes. The maximum amount of deduction is CZK 4 020 per year.
Short description of the related instruments: nap

Level of operation: National
Name of a part of the country: nap
Name of the region (for regional instruments): nap
Name of the sector (for sectoral instruments): nap
Relevance: Key scheme
Legal basis: Act 111/1998 on higher education, Act 586/1992 on income tax
Objective(s) and target(s): Two main factors are seen as the rationale/objective for this tax incentive: 1) to take into account that performing taxable economic activity during full-time study requires the student to exceed average daily amount of productive activity, which should be benefited through tax allowance; 2) to support students in gaining first work experiences and become partially independent in covering their study expenses.
Year of implementation: 1992
Year of latest amendment: 1998
Operation/Management: Ministry of Finance through General Financial Administration Office
Eligible group(s): Students up to 26 years (or 28 years in doctoral programmes) systematically preparing for future employment in full-time or combined formal education programmes.
Group(s) with preferential treatment: None
Education and training eligible: All accredited initial formal education and training programmes
Source of financing and collection mechanism: State (loss of tax revenue)
individual
Financing formula and allocation mechanisms: Maximum amount of deduction: CZK 4 020 (approx. EUR 146) per year.
Maximum share of training expenses that may be deducted: 100%.
Eligible costs: Fees and other costs related to education and training
Frequency of the use: Each year
Volumes of funding: The loss in public tax revenue amounted to CZK 89 429 161 in 2013; in 2012: CZK 90 792 470; in 2011: CZK 97 989 985.
Beneficiaries/take up: The number of individuals benefiting from tax deduction was 27 981 in 2013 (381 047 were eligible); in 2012: 28 252 (392 099); in 2011: 30 084 (395 992).
Organisation responsible for monitoring/evaluation: Ministry of Finance (in general responsible for tax administration through General Financial Administration Office).
Monitoring/evaluation reports available: General Financial Administration Office (link above)
Most relevant webpage - in English: na
Most relevant webpage - local language: http://www.financnisprava.cz/cs/dane-a-pojistne/analyzy-a-statistiky/ud…
Recent changes: Slight drop in number of beneficiaries between 2011 and 2013 (demographic reasons).
Sources: Ministry of Education, Youth and Sports, Higher Education Law; http://www.msmt.cz/vzdelavani/stredni-vzdelavani/informace-k-uplatnovan…; General Financial Administration Office; Statistics on Income Tax Revenue; http://www.financnisprava.cz/cs/dane-a-pojistne/analyzy-a-statistiky/ud…