The corporate tax in Czech Republic
designates the tax
applicable to the income of a company
operating on the local market. All companies registered in Czech Republic
which carry out commercial operations are required to comply with the tax regulations
imposed by the local authorities and our team of Czech lawyers
can offer assistance on the procedures that must be completed in this sense.
Taxation on corporate income in Czech Republic
Companies performing commercial activities are required to pay a set of taxes
on the income
deriving from their operations on the Czech territory
. A company in Czech Republic
will have to register for value added tax
), as well as for social security
and corporate tax
The corporate tax in Czech Republic was lowered several times in the last decade and, since 2010, it is applicable at the rate of 19%.
is applied on the income obtained by the Czech companies
, as well as for other types of legal entities, for example, the branches of a foreign company
operating in this jurisdiction.
Depending on the legal entity
of the business, the corporate tax
may be applicable to other types of incomes. In the case of a general partnership in Czech Republic
, the corporate tax
is imposed on the share of profits obtained in the respective entity and our Czech law firm
can offer further information on this matter.
Regulations referring to the Czech corporate tax
Companies registered in Czech Republic
are imposed with the corporate tax
for their income
deriving from overseas sources. In the case of foreign companies
operating in this country, the tax
is imposed only for the income
obtained throught the business activities carried out in Czech Republic
Investors who want to open a company in Czech Republic
should know that the corporate tax
is also applicable to the capital gains deriving from the sale of the company’s shares
However, we mention that the corporate tax can also be applied at reduced rates, ranging between 0% to 15%, but only in certain conditions.