Taxes in Czech Republic
Taxation of residents and permanent establishments of foreign companies in the Czech Republic is carried out based on worldwide income. Non-residents’ income is taxed only at the source of origin in the Czech Republic.
Residents are business entities registered in the Czech Republic, as well as companies whose management is located in the Czech Republic. Permanent missions are considered to be enterprises with a permanent place of business in the territory of the country.
What are the taxes
There are direct taxes, indirect taxes, and fees in the Czech Republic jurisdiction. Each group has Its own rules and conditions.
Tax rates
| Tax | Tax Rate |
|---|---|
| VAT | 21% |
| Corporate income tax | 21% |
| Personal income tax | 15% |
| Dividend tax | 15% – 35% |
| Capital Gains tax | 15% – 23% |
| Property tax | Varies by property type: Land: 0.75% of value; Buildings: CZK 2 to CZK 10 per m²; Business activities: CZK 2 to CZK 5 per m² |
| Inheritance tax | 21% |
| International tax | 15%-35% (WHT) |
| Cryptocurrency tax | 0%-19% (CIT) |
Tax system
The taxation system of the Czech Republic is similar to that of other European countries. The following taxes are levied in the Czech Republic: VAT, income tax, real estate tax, road tax, property tax, gift and inheritance tax, excise tax, real estate transfer tax, and tax on environmental protection.
Direct tax
Corporate income tax (corporate income tax), personal income tax, council tax levied by the government on behalf of the communes, property tax, a land tax levied by municipalities independently.
Indirect tax
VAT, excise taxes on fuel, tobacco, alcohol.
Fees
Annual registration tax, registration and stamp duties, import duties.
Business requirements
Legal entities are required to register with the tax office at the place of their legal address, private entrepreneurs – at the place of registration in the Czech Republic, within 15 days from the date of obtaining a permit to conduct business.
Business in Czech Republic
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Disclaimer
Tax laws and regulations are continually evolving and can differ depending on personal circumstances. The information given is intended for general guidance and might not represent the latest updates. It is strongly advised to seek the assistance of a qualified tax professional for specific, detailed, and current advice tailored to your situation.