República Txeca: Entorn econòmic
A 10% rate applies to public transport; heating; books and magazines subject to certain conditions; medications; medications for veterinary use; necessary baby food. Following the COVID-19 pandemic, the 10% rate also applies to: restaurant and catering services, including serving draft beer; household cleaning services; bicycle repairs, footwear and clothing repairs; children, senior and disabled home care; hairdresser and barber services; drinking water supplied through a pipe; water distribution and treatment of sewage; e-books; accommodation services; admission charges to cultural and sport events; services of fitness centers; surface ski lifts; services of saunas and baths.
A 0% rate applies to exports, intra-community supplies, international transportation, transport and services directly related to the importation or exportation of goods.
Capital gains obtained by non-resident companies of the EU/EEA or Czech companies investing outside the EU/EEA may be exempt from tax under the following conditions: the non-resident company is a tax resident in a third country with which the Czech Republic has signed a tax treaty; it satisfies the conditions for dividend exemption (10% holding for an uninterrupted period of 12 months) and is subject to a tax in the country of origin comparable to the Czech corporate tax at a minimum rate of 12%.
Charitable donations over CZK 2,000 may be deductible up to 10% of the tax base. Accrued interest under the generally accepted Czech accounting principles is in most cases tax-deductible, as are contractual fines and remuneration paid to members of the statutory bodies of a company. Payments for travel expenses and meal allowances for employees are in general deductible.
Tax losses can be carried forward up to five years (unless there is a significant change in the company's ownership structure). For taxable periods ending after 30 June 2020, tax losses may also be carried back for 2 years (capped at CZK 30 million).
Investment incentives are available for the manufacturing sector and the technology and data centres in the form of exemptions from property tax or corporate income tax, financial support for job creation and employee training. Research and development expenses give rise to a 100% tax allowance. An additional 10% tax credit is granted to companies whose research and development expenses in a tax year exceed those of the previous tax year.
The employer contributes 9% of the gross salary of the employee to the health insurance fund and 24.8% for contributions to the social security fund, for a total of 33.8%.
An exit tax is levied on the relocation of assets without a change of ownership between a Czech company and its foreign permanent establishment or when a Czech tax resident moves its residency abroad. The rate is the same as that of corporate income tax (currently 19%).
The transfer tax (imposed at a rate of 4% of the transaction price or the officially appraised value of the real estate transferred, whichever is higher) has been abolished with retroactive effect, hence it does not apply to real estate whose transfer was registered in the cadastral register on or after 1 December 2019.
No stamp duties are levied in the country.
Czech Republic | Eastern Europe & Central Asia | United States | Germany | |
Number of Payments of Taxes per Year | 8.0 | 13.9 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 230.0 | 226.2 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 46.1 | 36.5 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Personal Income Tax | 2021 |
Gross income up to the social security payment cap (CZK 1,701,168 in 2021) | 15% |
Gross income exceeding CZK 1,701,168 | 23% |
"Solidarity surcharge" | Abolished from 2021 |
Special tax base for selected types of non-Czech investment income (e.g. dividends and interest from abroad) | 15% |
Non-residents should have at least 90% of worldwide income from Czech sources to utilise the available deductions.
An 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. are among the available deductions. Tax deductions are granted for Czech mortgage interest (up to up to CZK 300,000 until 2021, CZK 150,000 thereafter), life and supplementary pension insurance (up to CZK 24,000 each), as well as for gifts. Donations to certain organizations can be deducted up to 15% of personal income tax base when the donation is of at least CZK 1,000 or 2% of personal income tax base (increased to 30% for 2020 and 2021 amid the COVID-19 pandemic).
Several tax credits are available, including: general personal tax credit (CZK 27,840), dependent spouse (CZK 24,840), child tax credit (CZK 15,204 for the first, CZK 19,404 for the second, and CZK 24,204 for the third and other following dependent child, under certain conditions; if the total tax is lower than the respective child credit, the taxpayer will receive a special tax bonus equal to the difference between the child allowances and one’s tax liability, without any cap from 2021), disability tax credit (CZK 2,520, CZK 5,040, or CZK 16,140 depending on the severity of disability), student tax credit (CZK 4,020 - up to 26 year-olds).
For certain categories of income, a fixed percentage of gross income may be claimed as a deduction (e.g. lump-sum deductions of 80% for agricultural income or craft activities, 60% for a limited number of trading and entrepreneurial activities, 40% for activities pursuant to the special statutory provision, 30% for renting a property). However, the lump-sum expense deductions are applicable only up to the maximum amount of the respective percentage out of CZK 2 million (i.e. capped at CZK 1,600,000, CZK 1,200,000, CZK 800,000, or CZK 600,000, respectively).
Find out more about Taxes and Accounting in the Czech Republic on GlobalTrade.net, the Directory for International Trade Service Providers.
Vols fer algun comentari sobre aquest contingut? Escriu-nos.
© Export Entreprises SA, Tots els drets reservats.
Actualitzacions: May 2022