Taxation

We will optimize taxation in your Czech company, help you with VAT refund, annual and monthly reports, as well as transportation tax and real estate tax.

 

Tax payments are essential to running an honest and transparent business. But it’s not always as painful as it’s made out to be! In the Czech Republic, paying taxes can even be a pleasant experience: everyone is helpful and willing to show you what to do and assist with paperwork. If you make a mistake in your reporting, tax office staff will call you into their office to sign for the corrected errors. This is another case where you simply cannot be without an accounting expert.

1. Income tax on individuals (Daň z příjmů fyzických osob) Regulated by law 586/1992 Sb. o daních z příjmů. Taxpayers are individuals and citizens of the Czech Republic, foreigners temporarily or permanently residing and earning income in the Czech Republic or abroad.The income tax rate for individuals is 15%.

2. Income tax on legal entities (Daň z příjmů právnických osob) Regulated by law 586/1992 Sb. o daních z příjmů. Corporate income tax is imposed on entities having a registered address in the Czech Republic, as obtained in the Czech Republic or abroad. For those without a registered address in the Czech Republic, the mandatory tax only affects income received in the CR. The income tax rate for businesses is 19%.

3. Value added tax VAT (Daň z přidané hodnoty (DPH)) Regulated by law 235/2004 Sb. o dani z přidané hodnoty. VAT taxpayers are legal entities and individuals who are engaged in commercial activities. Payment of VAT is required when: turnover for the 12 calendar months exceeded 1,000,000 CZK cooperatives or other commercial entities’ where the turnover of all community members of for 12 months exceeded 1,000,000 CZK, even when individual members’ turnover does not exceed this amount. VAT rate (DPH) is: 21% primary - for services and some goods 14% reduced - for goods only The reporting period is: quarterly monthly

4. Property Tax (Daň z nemovitostí) Regulated by Law 338/1992 Sb. o dani z nemovitostí. The following are subject to property tax: land residential and non-residential buildings The property owner should calculate this tax based on current tax rates and real estate parameters.

5. Gift tax (Daň darovací) Regulated by Law 357/1992 Sb. o dani dědické, dani darovací a dani z převodu nemovitostí Taxpayers are legal entities and individuals who receive gifts of movable and immovable property and other economic gains, including those abroad.

6. Income tax for employees (Daň z příjmů fyzických osob ze závislé činnosti a funkčních požitků) Regulated by law 586/1992 Sb. o daních z příjmů Taxpayers are: Individuals who are employed (employees) Individuals and legal entities (employers)

7. Special rates on income tax (Daň z příjmů vybíraná srážkou podle zvláštní sazby daně) regulated by law 586/1992 Sb. o daních z příjmů. In some cases, provided by § 36 586/1992 Sb. Law o daních z příjmů, income tax for businesses and individuals can be calculated at a special rate.

8. Road tax (Daň silniční) regulated by law 16/1993 Sb. o dani silniční. Taxpayers are individuals and legal entities who own vehicles registered in the Czech Republic. The amount of tax depends on the engine size and weight of the vehicle. Road tax is not paid in the cases provided for in § 3 16/1993 Sb. Law o dani silniční

9. Inheritance tax (Daň dědická) regulated by law 357/1992 Sb. o dani dědické, dani darovací a dani z převodu nemovitostí. Taxpayers are individuals and legal entities who have obtained an inheritance, or a portion thereof. Individuals exempt from this tax are those belonging to category 1 (close blood relatives, i.e. sons, daughters, mothers, fathers, etc.)

10. Real estate transfer tax (Daň z převodu nemovitostí) is regulated by law 357/1992 Sb. o dani dědické, dani darovací a dani z převodu nemovitostí This tax is paid when a real estate owner transfers his or her property’s ownership.

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