Taxrates for Companies and Individuals in Czech Republic
Filing Dates / Payment Dates for Tax Returns
31.01.2010 |
for Property Tax payment, Property Tax Return and Road Tax for company cars. |
31.03.2010 |
for Corporate Tax Return and Personal Income Tax Return. |
25.04.2010, 25.07.2010, |
for Quarterly VAT Tax Return, for Monthly VAT Return it is the 25. of the next month. |
15.03.2010, 15.06.2010, |
for Quarterly Income Tax Prepayments, in case of high income / revenue. |
s.r.o. Corporate Tax
Profit Tax |
21% (in 2008), 20% (in 2009) and 19% (in 2010) note: due to the economic situation, these percentages may change. |
Tax loss carry forward |
5 years |
Witholding Tax |
15% - to be applied after the tax on profit. |
VAT |
20% (was 19%) - valid from 01.01.2010 (goods and services) 10% (was 9%) - valid from 01.01.2010 (mostly foodstuffs) |
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% - this used to be higher, between 15% and 32%. The downside is that now to the gross salary ('hruba') first social- and health charges are added (the so-called 'super hruba') and from that 15% is calculated. |
Employee Social Security Charges |
25% - employer's part, 6.5% - employee's part |
Employee Health Insurance Charges |
9% - employer's part, 4.5% - employee's part |
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 60% of the total revenue. |
Social Charges |
29.2% - calculated over 30% of total revenue. Minimum monthly charges 1731 CZK (was 1720 CZK in 2009) |
Health Insurance |
13.5% - calculated over 30% of total revenue. * Minimum monthly charges 1601 CZK (was 1590 CZK in 2009) * 3rd-Country Nationals without permanent residence permit pay nothing, they paid for health insurance when applying for the visa. |
Cost Estimate |
Please use this živnostenský list cost calculation sheet |
Other Tax
Company Car Tax |
To be paid in 4 parts, or at once in the beginning of the year. Costs are between 1000 and 4000 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%, 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. |