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.
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.