Taxrates for Companies and Individuals in Czech Republic

Filing Dates / Payment Dates for Tax Returns

31.01.2016 for Property Tax payment, Property Tax Return and
Road Tax for company cars.
31.03.2016 for Corporate Tax Return and Personal Income Tax Return.
25.04.2016, 25.07.2016,
25.10. 2016, 25.01.2017
for Quarterly VAT Tax Return,
for Monthly VAT Return it is the 25. of the next month.
15.03.2016, 15.06.2016,
15.09. 2016, 15.12.2017
for Bi-annual and quarterly Income Tax Prepayments,
in case of high income / revenue.

SRO Corporate Tax

Profit Tax
(of s.r.o's)
21% (in 2008), 20% (in 2009) and 19% (ifrom 2010 on)
note: due to the economic situation, these percentages may change.
Tax loss carry forward 5 years
Witholding Tax
(dividends)
15% - to be applied after the tax on profit.
VAT 10% VAT (baby food, some medicine, some printed books)
15% VAT (mostly foodstuffs etc.)
21% VAT (on goods and services)
VAT Refund Period 30 days - the taxoffice will refund within 30 days after filing the VAT report.
You also have the obligation to pay within 30 days.

VAT and VAT Registration in Czech Republic.

Employee / Income Tax, Social Charges and Health Insurance

Employee/Personal Income Tax 15% - but for the part over 48 times the average income (1.242 432 CZK) an additional 7% solidarity tax is added.
(valid from 01.01.2015)
Employee Social Security Charges 25% - employer's part,
6.5% - employee's part (2015)
Employee Health Insurance Charges 9% - employer's part,
4.5% - employee's part (2015)

Živnostenský List / Trade license Tax

Standard Expense Deduction 60% * - whether you make expenses or not, the remaining 40% is the basis for taxes and charges.

* for most professions, for 'manual' labor it can be up to 80%
Income Tax 15% - calculated over the remaining 40% of the total revenue. but 22% if the tax base is over 1.2 M CZK

no personal tax deduction and deductions for non-working spouse and children can be claimed with the 60%/40% system (valid from 01.01.2015)
Social Charges 29.2% - calculated over 20% of total revenue.
Minimum monthly charges 1.890 CZK (2015)
Health Insurance 13.5% - calculated over 20% of total revenue. *
Minimum monthly charges 1.7487 CZK (2015)

* 3rd-Country Nationals without permanent residence permit pay nothing, they paid for health insurance when applying for the visa.

Other Tax

Company Car Tax To be paid in 4 parts, or at once in the beginning of the year.
Costs are between 1.000 and 4.000 CZK, depending on engine size.
A car used for a company must be registered for silnicní dan.
This is not the same as the highway sticker.

Company Car in s.r.o Company or Trade License
Property Tax An owner of property will have to pay taxes, consisting of 2 parts, building tax and landtax. For both the tax is calculated according to:

the number of sqare meters (of the building or land),
multiplied by the tax rate (depending on the use of the space),
multiplied by the coefficient (depends on the city).
Rental Income Tax There are 2 ways of calculating the taxable income:

rental income - calculated expenses and deductions, or
rental income - a standard expense deduction of 30 %

This income is subject to personal or corporate income tax.
Realestate Transfer Tax 3.5%, to be paid by the seller, based on an official assessment or the salesprice, whichever is higher.
Capital Gains Tax when non-commercial property is sold (with profit) within 5 years of purchase, capital gains are subject to tax.
Capital gains are defined as purchase price - sales price.

Contact Alexio.cz - Expat Accountant in Prague

In case you have a question about taxes in Czech Republic, please do not hesitate to ask our accountant or tax advisor, simply write us an email or fill in the online form. .