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+420 296 348 207 Václavské náměstí 66, 110 00 Praha 1

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 targeted and customer-oriented tax advice (in particular advice on tax and accounting issues for foreign companies in the Czech Republic, tax returns in the Czech Republic, statements and analyses and tax representation before the relevant tax offices and authorities in the Czech Republic).

Detailed information on our services can be found here.

All natural and legal persons must pay income tax from their income.

1. income tax of legal entities:

The income tax of legal entities is levied on all income of Czech legal entities and on all income earned by foreign persons 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. From 1 January 2010, legal entities will be taxed at a uniform corporate income tax rate of 19%.

The Czech Republic has concluded double taxation agreements with more than 80 countries. This agreement has been in force with the Federal Republic of Germany since 1983. The full text of this agreement can be found here.

2. income tax of natural persons:

Individuals resident in the Czech Republic are subject to income tax on their entire income, while non-residents are taxed only on the income earned in the country. From 1 January 2008, a uniform income tax rate of 15% of the so-called super gross wage (i.e. gross wage + social, health and health insurance contributions) was introduced for individuals.

From 1.1.2013 the wealth tax was introduced. Persons whose income (in 2017) exceeds CZK 112.928 (approx. EUR 4,300) per month pay an additional tax of 7 per cent per month from this income. This tax is levied as soon as a person earns four times the average wage.

Publication date Last updated date: 31.10.2019