Companies registered in Czech Republic
are required to pay several taxes
at the local authorities. The taxes
are due at specific periods of the year and at certain rates, as prescribed by the national legislation. Businessmen interested in setting up a company in Czech Republic
should be familiar with the rates imposed here, but also with the conditions that have to be met when paying taxes
. Our team of Czech company incorporation representatives
can offer an in-depth presentation on the procedures referring to corporate taxation
Corporate tax in Czech Republic
Businessmen setting up a Czech company should know that all the businesses established here are required to pay the corporate tax, which is a tax applicable on the profits of the company.
Companies set up as partnerships are also imposed with a corporate tax, but the taxation is performed in accordance with the profit shares of the partners.
Businesses incorporated in Czech Republic
operating on foreign markets are taxed on their derived income created on those foreign markets, while foreign companies with activities in Czech Republic
are imposed with the corporate tax
only for the profits
incurred on the Czech market
Paying VAT in Czech Republic
All companies performing business activities in Czech Republic
are imposed with the value added tax (VAT)
, which is imposed for the goods and services traded on the local market.
The standard VAT rate is established at 21%, while the reduced VAT is applicable at the rates of 15% and 10%.
Czech Republic also offers a VAT exemption for several services, as follows:
• postal services;
• television and radio broadcasting;
• social welfare.