Taxes and Accounting in the Czech Republic
- Tax Year
- The Amendment to Law on Accountancy allows taxpayers to keep accounts in another fiscal period than the calendar year. The fiscal tax year must have 12 consecutive months.
- Accounting Standards
- The Czech accounting system is based on double-entry bookkeeping and is largely consistent with the systems of other European countries with certain minor difference regarding, for example, financial leasing or depreciation of fixed assets. Czech accounting rules are determined by the Ministry of Finance. They come from the National Accounting Standards. Czech Republic tries to get accounting rules in accordance with IAS, IFRS.
- Accounting Regulation Bodies
Ministry of Finance
- Accounting Reports
- Companies have to establish a balance sheet, a profit and loss account and annexes. Those accounts must be published in Czech, in CZK. More, companies obliged to have an audit must prepare the statement of cash flows and the statement of changes in equity. Corporations limited and societes listed on Stock Exchange have to publish the management report.
- Publication Requirements
- The balance sheet and the profit and loss account must be prepared in accordance with the model which is on your disposal in the annexe of the Act. on Accounting.
Tax payers must file tax returns within three months following the end of the tax period. Czech legal entities that are required to prepare audited financial statements must file their tax returns within six months following the end of the taxable period.
- Professional Accountancy Bodies
Union of Accountants
Chamber of Certified Accountants
- Certification and Auditing
- Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. For more information, you can contact the Chamber of Auditors of the Czech Republic.
- Accounting News
Union of Accountants
Ministry of Interior, coll. of codes
- Nature of the Tax
- Value added tax (VAT)
- Tax Rate
- Reduced Tax Rate
- 10% of VAT on food, books, special healthcare products.
- Other Consumption Taxes
- Excise taxes are also perceived (on tobaccos, oil productions, beer, wines and liqueurs), applied according to the type and the quantities of products. They are payable under 10 days after announcement of Customs. Energy tax on supplies of electricity, natural and other gases, and solid fuels ffective since January 2008.
More detailed information on excise duties on the European Commission website.
- Company Tax
- Tax Rate For 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.
- 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.
|Personal Income Tax||A flat 15%|
- Allowable Deductions and Tax Credit
- Employee's contribution to an old-age pension, a taxpayer's annual exemption, exemptions for non-working wife, disability allowance, high school / university students, etc. Tax deductions are granted for mortgage interest in Czech Republic, life and supplementary pension insurance, and gifts. Personal allowances are available for the taxpayer, her/his spouse and children.
- Special Expatriate Tax Regime
- Taxable income includes earnings from dependent activities including benefits in-kind (e.g. housing allowances, use of a company car for private purposes, etc.), income from business activities, and income from capital, leasing and other sources.
For detailed information, consult the Taxation Guide provided by Czechinvest.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
List of Treaties on Income and on Capital
- Withholding Taxes
- Dividends: 0/15%, Interest: 0/15%, Royalties: 15%
- National Organizations
- The body responsible for the protection of intellectual property is Ùrad Prùmyslového Vlastnictvi (Industrial Property Office). You can also consult the Copyright Law Department
- Regional Organizations
- For the protection of patents:
The European Patent Office.
T o register Community Trade Marks and Community Designs: The Office for Harmonization in the Internal Market.
- International Membership
Member of the
WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
National Regulation and International Agreements
|Type of property and law||Validity||International Agreements Signed|
Act.No 527/1990 on Inventions and Rationalisation Proposals
|maximum of 20 years|| Patent Cooperation Treaty (PCT)
Strasbourg agreement Concerning the International Patent Classification
Act. No 441/2003 on Trademark
|10 years|| Trademark law treaty
Protocol relating to the Madrid Agreement
Act. No 207/2000 coll. on Protection on Industrial Design
|maximum of 25 years|
Law No. 121/2000 Coll. on Copyright, Rights Related to Copyright and on the Amendment of Certain Laws (Copyright Act)
|Financial rights run for the life of the author and for 70 years after his death.|| Berne convention
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
Act No. 478/1992 Coll. on Utility Models
- Independence of Justice
- Equal Treatment of Nationals and Foreigners
- The Language of Justice
- Recourse to an Interpreter
- Sources of the Law and Legal Similarities
Czech Republic being a member of the European Union, the national law in the country needs to comply with the conditions of the Community legislation. Czech Republic has not accepted compulsory ICJ jurisdiction.
- Principial source of the law is a Constitution of the Czech republic with the Charter of Fundamental Rights and Basic Freedoms which is based on civil law system originating from Austro-Hungarian codes.
- All international agreements adopted by czech parlament take priority over national legislation.
- Written Codes
- Findings of the Constitutional Court
- Checking National Laws Online
Czech law in english
Czech codes on-line, Businesscenter.cz (in Czech)
- National Standards Organizations
Czech Standards Institute (CNI)
Czech Office for Standards, Metrology and Testing (UNMZ)
- Integration in the International Standards Network
- The Czech Republic has harmonized its standards with European norms. Czech Republic is a member of:
- ISO - International Standard Organisation
- IEC – International Electrotechnical Commission
- ITU – International Telecommunication Union
- CEN - European Committee for Standardization
- CENELEC - European Committee for Electrotechnical Standardization
- ETSI – European Telecommunications Standards Institute
- Classification of Standards
- Original Czech standards (10% of the overall annual production of technical standards), which can only be use in areas where European or international standards do not exist, are designated by : CSN + 2 numbers of the class + 2 numbers showing the rank under the class + 2 numbers showing only the sort order (CSN 73 4301)
European or international standards (90% of overall annual development of technical standards) are designated like that CSN EN 115, CSN ISO 1735 , CSN EN ISO 9001, CSN IEC 61713, CSN ETS 300 976
For more info see website of CNI.
- Online Consultation of Standards
Czech Standards Institute
- Certification Organizations
Czech and Slovak Testing Board
Institue for Testing and Certification (in Czech).
Czech Institute for Accreditation
- General Information
Doing business in CR
Czech culture, customs and etiquets
Czech business culture
Guide to Czech Republique
Guía para al República Checa
- Opening Hours and Days
- A typical Czech working day is 8:00 am to 4:30 pm, with a break for lunch. Closing days are Saturday and Sunday.
|New Year's Day||January 1|
|Labor Day||May 1|
|Liberation Day||May 8|
|Cyril & Methodius Day||July 5|
|Jan Hus Day||July 6|
|Statehood Day||September 28|
|Czech Founding Day||October 28|
|Struggle for Freedom Day||November 17|
|Christmas Eve||December 24|
|Christmas Day||December 25|
|St. Stephen's Day||December 26|
Periods When Companies Usually Close
|No general closing periods||People prefer to take their holidays during school holidays to stay with their children : in the summer (July-August), one or two weeks during Christmas, one week in February or March during the spring holiday (he date is not fixed and depends on regions and change every year). But in most cases the office stays open.|
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