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How to Sell Shares in a Czech Company
Updated on Monday 23rd January 2023 Rate this article
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Investors operating on the Czech market can sell their shares owned in the company when they’d want to proceed to this action. However, the procedure has to be performed following specific steps and it also involves the payment of several taxes, as prescribed by the Czech legislation. Foreign investors who want to sell the shares owned in a Czech company can receive assistance on this matter from our team company incorporation specialists in Czech Republic.
Selling shares in Czech Republic
Persons who want to sell shares in Czech Republic should know that the procedure requires the payment of the corporate income tax on the capital gains incurred during the transfer.
The selling process refers to a transfer of ownership, in which the buyer will be invested with rights derived from owning a proportion of a company’s shares; our team of Czech company formation representatives can offer more details on this matter.
Share transfer taxation in Czech Republic
It is important to know that the transfer procedure can be exempted of taxation in specific situations. A company which is a tax resident in Czech Republic, the European Union (EU), Norway or Liechtenstein and which sells shares to a subsidiary company, seated also in one of the above mentioned locations, can be exempt from paying the transfer tax.
The exemption can also be imposed for the share transfer in which the recipient is a non-EU company. For example, this is applicable when the Czech Republic has signed a treaty for the avoidance of double taxation with the country in which the non-EU company is residing. The rule is also applicable to non-EU subsidiaries which are imposed with a corporate income tax with a minimum value of 12%.
According to the Czech legislation, the transfer of ownership will also take into account the liabilities incurred by the company, as well as the taxes applicable to these liabilities.
If a corporation sells its shares in Czech Republic, the gains on the transfer will be taxed with the corporate income tax applicable at a rate of 19%.
We suggest you discuss with our team of accountants in Czech Republic if you want such services for your company. Our team has experience in payroll, audits, bookkeeping, debt monitoring, annual financial statements, and administration of human resources among others. We offer assistance and support for those who want to register their company with the financial authorities for the payment of taxes.
Businessmen interested in receiving more details on the share selling procedure in Czech Republic can address to our team of Czech company formation agents.
Meet us in Brno
Call us at +420 721 565 868 to set up an appointment with our specialists in company formation in Brno. Alternatively you can incorporate your company without traveling to Czech Republic.
As an CorpexLab client, you will benefit from the joint expertize of local experts and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Czech Republic.
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