30 Sep 2023. This article provides an overview of the Czech tax system and planning opportunities. Expatriates taking up employment in the Czech Republic will be subject to comprehensive rules and in some cases employment visa requirements. Grant Thornton Czech Republic’s Expatriate tax team can help expatriates and their employers in dealing
THE CZECH INCOME TAX' RICHARD E. HALPERIN** 1. INTRODUCTION On April 28, 1992, the Federal Assembly of the Czech and Slovak Federal Republic enacted the Act on Income Taxes ("Old Federal Act").' That statute was to become generally effective beginning January 1, 1993. Effective January 1, How to calculate Czech personal income tax. 15% income tax rate for those earning below approximately CZK 1 935 552. 23% income tax rate for those earning above approximately CZK 1 935 552. There are also non-taxable items (tax deductibles) to reduce the tax base if certain legal conditions are met. The nominal income tax rate in the Czech Republic is above 15%. There may be situations where the effective tax will be below 15% (because of income tax credits, R&D allowances, differences between the profit recognised under the International Accounting Standards, which are used to calculate the effective tax, and the Czech tax base).Information current as of October 2020 Survey of Global Investment and Innovation Incentives | Czech Republic 112 Country background The corporate income tax rate in the Czech Republic is 19%. The government offers various subsidy programs to entrepreneurs, either from national financial sources or from EU funds. Companies4.2 Tax on capital gains on the disposal of shares in a company owning real estate. Proceeds subject to income tax. Individuals exempted if time period between buying and selling of shares exceeds five years. Income tax rate: 19% (corporations), 15% (individuals). Companies (tax residents of the Czech Republic and the EU) exempted if selling at XQxp.