Income tax in the Czech Republic

Here you will find general information about the income tax in the Czech Republic.

In cooperation with our partner, a renowned Czech tax advisor, we can offer you individual tax advice (in particular advice on tax and accounting issues for foreign companies in the Czech Republic, tax returns and tax declarations in the Czech Republic, statements and analyses and tax representation in front of the relevant tax offices and authorities in the Czech Republic).

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All individuals and legal entities must pay income tax from their income.

1. income tax of legal entities:

The income tax for legal entities (corporate income tax)  is levied on all income of Czech legal entities and on all income earned by foreign legal entities in the Czech Republic. It is payable based on the profit shown in the balance sheets and after taking into account certain tax-deductible and non-deductible items. The current corporate income tax rate is 21%.

The Czech Republic has signed double taxation agreements with more than 80 countries.

2. income tax of individuals:

Individuals, resident in the Czech Republic, are subject to the income tax with their entire income, while non-residents are taxed only with the income earned in the country. There are 2 income tax rates for individuals:

• the basic tax rate of 15% from taxable income (gross wage/salary for employees and profit for self-employed enterpreneurs)
• the annual taxable income which exceeds the amount of 1.582.812 CZK (app. 63.500 EUR) is taxed by a tax rate of 23%.

Publication date 27.10.2019 Last updated date: 18.7.2024