The corporate tax in the Czech Republic is levied on companies. Find out below the conditions under which it is applied and how our lawyers can assist you in tax matters.
| Short Facts | |
| Who pays corporate income tax (CIT) in the Czech Republic? | All entities with commercial activities in the Czech Republic. Branches of foreign companies are also subject to this tax. |
| Partnerships subject to CIT | General and limited partnerships in the Czech Republic |
| Legislation | Tax Act in the Czech Republic ( Act No 586/1992 Coll.) |
| Tax registration | With the Tax Office in Prague |
| What is TIN? | The Tax Identification Number issued for companies in the Czech Republic |
| Standard CIT | 21% applied to all business profits |
| Special CIT | – 5% for investment funds, – meeting specific requirements |
| Extra CIT | 60% applied to the excess of profits of banks and other large entities |
| Conditions for Czech resident companies | Must pay CIT on income derived from worldwide sources. |
| Special CIT rate of 15% | Imposed on dividend income of Czech tax resident companies received from non-resident enterprises |
| CIT exemptions | For pension funds |
| When is CIT paid in the Czech Republic? | Once per year |
| Corporate tax deductions available (YES/NO) | YES |
| Assistance offered by our Czech tax agents | For tax registration in the Czech Republic, tax advice and support for paying all fees imposed for companies registered here. |
| Other services | Can be provided by our team of Czech accountants |
Table of Contents
What companies pay the corporate tax in the Czech Republic?
Both local and foreign companies that operate through permanent establishments in the Czech Republic.
Are domestic and foreign companies levied the Czech corporate tax the same way?
No. The tax is applied as follows:
- domestic companies are taxed on their worldwide income;
- foreign companies are taxed on the income generated in the Czech Republic.
NOTE: Subsidiaries of foreign companies are treated as domestic entities. Branch offices are considered permanent establishments.
What is the income a company must pay corporate tax on in the Czech Republic?
- business profits;
- capital gains from the sale of shares (exemptions may apply in this case, so you can obtain detailed guidance from our Czech lawyers on this matter).
What is the corporate tax rate in the Czech Republic?
21% rate is the corporate income tax (CIT) in the Czech Republic in 2026. This tax applies to all business profits generated in this country. Let's review some information about the corporate income tax imposed in the Czech Republic:
- according to the Income Tax Act in the Czech Republic, a special income tax of 5% is imposed for investment funds under certain conditions;
- a 60% CIT surcharge applies to excess profits of companies in the energy sector and large banks;
- 15% corporate income tax applies to dividend income of tax-resident entities in the Czech Republic if received from non-resident companies. Participation exemption might also apply;
- 0% CIT rate applies to pension funds in the Czech Republic.
You can also explore this infographic for details on this subject:
Are there any other types of income to which the Czech corporate tax applies?
Yes, there are cases in which companies pay a specific corporate tax on certain types of income. It applies to:
- profit share;
- settlement shares;
- shares of companies in liquidation.
To benefit from this special tax rate, which is 15%, the income must be directed to Czech companies with activities abroad or Czech permanent establishments of foreign enterprises.
Are there any local or regional corporate taxes applied in the Czech Republic?
No.
How are group companies taxed in the Czech Republic?
The Czech Republic transposed the EU Pillar Two Directive into its tax legislation, which implies a minimum corporate tax for multinational companies with annual revenue of more than EUR 750 million. They are levied a top-up tax of 15%.
What is the basis for the computation of the corporate tax in the Czech Republic?
The income subject to the Czech corporate levy is calculated in accordance with the national accounting standards in the currency used by the company in its accounting books. It is also possible for a local business to use the International Financial Reporting Standards (IFRS), while for others, they are mandatory (this is the case of public companies).
What is the tax year in the Czech Republic?
For corporate taxation purposes, the fiscal year in the Czech Republic is the same as the calendar year. However, it is possible for businesses to choose a different tax year.
What is the deadline for filing corporate tax returns in the Czech Republic?
3 months from the end of the tax period. Extensions are available under certain circumstances, which can be explained by one of our lawyers in the Czech Republic.
We invite you to learn more about corporate tax in the Czech Republic from our specialists. Please contact our law firm in the Czech Republic and request assistance in matters of business taxation and more.