Company tax in the EU – Czechia
The company tax rate in the Czech Republic is 19%.
The rate for basic investment funds is 5% and 0% for pension funds (with exemptions laid down in the Income and Corporation Taxes Act).
When you set up your business, you should ensure that you do the following:
- register for company tax: cs
Within 15 days of being established, a business must apply to its local tax office to be registered for company tax.
- keep accounting records: General rules on bookkeeping in the Czech Republic
- prepare a company-tax return: cs :
Tax returns are submitted annually by the end of March (for the previous year), or by the end of June if the tax return is completed and submitted by a tax adviser or if the taxpayer is required to have accounts certified by an auditor.
- pay company tax within the deadline for submitting the return: Information concerning tax payment
Advance payments against a tax liability are paid in the course of a prepayment period under conditions laid down by law.
- submit a company tax return within the deadline set for payment of the tax (by the end of March/June of the following year): cs
What profits do you pay company tax on?
Tax is payable on profits from all of your company's activities (including profits from the management or disposal of its assets).
If your company is based in the Czech Republic, it pays company tax on all its profits generated both in the Czech Republic and abroad.
If your company is not based in the Czech Republic but nonetheless has an office or branch there, it pays company tax only on its profits from its activities in the Czech Republic.