are taxed under a different taxation system
than the one applicable to commercial companies
and thus, businessmen who want to open a company in Czech Republic
in the investment field
should comply with the applicable regulations. The legislation regarding the taxation of investment funds in Czech Republic
was recently modified and, starting with 1st of January 2015, the Income Tax Act
prescribe a new taxation scheme
, on which our team of company formation representatives in Czech Republic
can provide in-depth information.
Taxation of Czech investment funds
Under the new regulations of the Income Tax Act
, investment funds
set up as closed-ended vehicles
are imposed with a tax
applicable at the rate of 19%
Up until this new Act, the investment funds in Czech Republic
were taxed at the same rate, but investors interested in company formation in Czech Republic
should be aware that, starting with 2015, such vehicles
are taxed in accordance with the class of funds
in which the investment vehicle
Basic investment funds in Czech Republic
At the moment, basic investment funds in Czech Republic, which are prescribed under the Section 17 of the Income Tax Act, can still be imposed with a lower rate of 5%.
According to the Act, basic investment funds refer to the following categories:
• funds which trade their stocks on European regulated markets;
• investment companies with variable capital (set up as investment funds or sub-funds);
• investment vehicles in which more than 90% of the assets are being invested in stocks and bonds.
At the same time, businessmen who want to invest in Czech Republic
should know that pension funds
registered here are exempted from paying a tax
on the corporate income.