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Czech Republic Income Tax Rates 2015

Individuals

Taxable Income (CZK)

Tax Rate (%)

Up to 1,277,328

15

Over 1,277,328

22*

*The 22% rate is applicable on employment income and entrepreneur income only.

The low tax rate is compensated by an increase in the tax base (the tax base includes the amount of social security and health insurance paid by the employer).

Companies

Taxable Income (CZK)

Tax Rate (%)

Companies

19

Qualified investment funds and mutual funds

5

Pension funds and pension institutions

0

A Czech limited partnership is treated like a company with regard to the proportional income of its limited partners. In a general partnership, the partner's pro rata income is subject to income tax at the individual's rate (if a partner is a corporation then the pro rata income is subject to corporate income tax at the corporate rate). The same approach is applied to the income of general partners of a limited partnership.

VALUE ADDED TAX (VAT)

The standard VAT rate is 21%. The first reduced rate of 15% is applied on specific goods and services. Second reduced rate of 10% is applied on books, drugs, baby food and other special goods and services. The threshold for obligatory registration for VAT is a turnover exceeding CZK 1,000,000 (approx. EUR 36,500) in the preceding 12 months.

CAPITAL GAINS TAX (CGT)

Individuals

Capital gains are generally taxed at the rate of 15%. Disposal of real estate or shares is tax exempt provided that certain conditions are met.

Companies

Capital gains are taxed at the standard corporate tax rate. Certain capital gains are exempt provided conditions similar to Parent Subsidiary Directive conditions are met (10%, 12 months etc.).

LOSSES

Losses of individuals and companies may be carried forward for a limited period of five years provided general conditions are met (e.g. the 'same business' test). No tax loss carry back is available.

TREATY NETWORK

83 countries.

WITHHOLDING TAX

 

  • Dividends: 35% or 15% (unless reduced/exempt under EC Directive or the relevant tax treaty)
  • Interest: 35% or 15% (unless reduced/exempt under EC Directive or the relevant tax treaty)

 


Doing Business Abroad - Tax Rates 2015 /2016

 
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Contact Us
Andrea Kleinova
Masarykova 413/34
Brno 602 00
Czech Republic
+420 608 971 417


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