Income tax in the Czech Republic
Here you will find general information about the income tax in the Czech Republic.
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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. 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 over 1.701.168 CZK (app. 68.000 EUR) is taxed by a tax rate of 23%.
Publication date 27.10.2019 Last updated date: 26.2.2021