Corporate Tax in the Czech Republic
- Tax Base For Resident and Foreign Companies
- All Czech tax residents are subject to these taxes on their worldwide income and capital gains, while Czech tax nonresidents are taxed only on their income from Czech sources.
The tax residency of a legal entity is its seat or place of effective management in the Czech Republic.
|Income from investment and pension funds||Reduced rate of 5%|
- Tax Rate For Foreign Companies
Investment income received by Czech companies from abroad forms a separate tax base that is taxed at 15%.
The income tax rate is the same for foreign and domestic investors.
Branches are taxed at the same rate as local companies. There are no excess-profit or alternative minimum taxes.
- Capital Gains Taxation
- Capital gains are taxed at the normal corporate income tax rate.
- Main Allowable Deductions and Tax Credit
Tax deductible costs are similar to that in other countries (if incurred in order to generate, assure and maintain the taxable income): tax depreciation on assets, purchased material and services, wages, salaries and social security and health contributions.
Tax deductible items: charitable donations, research and development costs allowance, acumulated tax losses carried forward from previous year, tax relief. For any additional information.
- Other Corporate Taxes
- Withholding taxes, value added tax, real property tax and real estate tax, tax on operators of photovoltaic power plants. For any additional information access the PKF Tax Guide on the Czech Republic.
Country Comparison For Corporate Taxation
|Czech Republic||Eastern Europe & Central Asia||United States||Germany|
|Number of Payments of Taxes per Year||12.0||41.7||11.0||16.0|
|Time Taken For Administrative Formalities (Hours)||557.0||313.9||187.0||215.0|
|Total Share of Taxes (% of Profit)||48.8||41.2||46.8||48.2|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
Any Comments About This Content? Report It to Us.
No content has been posted to this folder yet.
Be the first to feature your expertise related to Corporate Tax in the Czech Republic!
- Post any content you may have that features your expertise, such as a text article with business tips, presentation, market report, etc
- By sharing your knowledge you gain more visibility for your profile not only on GlobalTrade.net but across the web
Post your content now by simply clicking on the button below.
Check these folders already populated with content posted by other users:
Click here to find out more about key benefits and instructions for contributing to the site.
Find the related Czech companies with Kompass:
Post any content you may have that features your expertise and offers valuable information to the international trade community.
The more informative content you post the more visible your will be, as your valuable content will link directly to your profile.
Check these sample pages for illustration: