Abstract:

For the entrepreneuers and his family is a transfer of the family business to his successors an important strategic challenge. Family business succession process is specific for each family and is influenced by many different factors. Due to the historical development of the Czech Republic, which in the Communistic period did not allow private property, the Czech entrepreneurs stand before a completely new challenge for them, how to transfer their family businesses to the next generation? The paper is focused on the issue of family business succession, with an emphasis on its tax effects. The choice of the family business succession form has on the predecessor and his successor significant tax impacts. The aim of the paper is to identify and compare the tax effects of the family business succession from the perspective of the currently valid legislation in the Czech Republic. The research findings show a significant impact of the legislation on the tax liability of family businesses in the succession process.