Accounting and legal

Accounting and tax

    Czech Republic corporate tax duty
  1. All companies in Czech Republic are subject to a general corporate income tax rate at 19%. Companies must file annual tax returns within three months following the end of the tax year;
  2. The sales tax, VAT, is levied in Czech at a basic rate of 21%. A company must register for VAT if its annual remittances in Czech Republic exceeds US$46,000. VAT returns are due by the 25th of the following month;
  3. A standard 15% withholding tax is applicable on i) dividends, ii) royalties and iii) interests payable to non-resident companies. A higher rate of 35% is applicable to companies residing in blacklisted tax haven jurisdictions including British Virgin Islands, Seychelles, Cayman Islands;
  4. Dividends received from a subsidiary are corporate tax exempt provided i) the distributing company is EU based and our Client’s business has held 10% of its share capital for over 1 year or ii) the recipient parent company holding 10% of its share capital for 1 year and located in a country signatory of a tax treaty with Czech Republic and with a corporate tax rate of at least 12%;
  5. Branches of foreign business entities in Czech Republic are subject to a standard corporate tax rate of 19%. However, there is no branch remittance tax required;
  6. Property transfer tax in Czech Republic is levied at a standard rate of 4% of the actual value of the property;
  7. Czech employers are obliged to remit a social security contribution of 9% to the health insurance and 25% to the social security fund. This is chargeable on the employees’ gross salary;
  8. Business losses in Czech Republic can be carried forward for the next 5 years. However carry back of losses is not permitted;
  9. The Czech Republic has signed about 81 double taxation treaties with different countries including Singapore, Canada, United Kingdom, New Zealand, USA among others;
  10. Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
  11. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Contact us

For additional information on our corporate tax and legal services in Czech Republic, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
czech Chamber of Commerce czech national bank CNB Government of the Czech Republic discover czech Republic czech Ministry of Finance czech ministry of foreign affairs