Czech Republic

Overview

Last reviewed - 09 January 2020

The Czech Republic, a landlocked country in Central Europe, is bordered by Poland to the north, Germany to the west, Austria to the south, and Slovakia to the east. It is divided into 14 regions, with Prague as the capital. The official language of the Czech Republic is Czech, and the currency is the Czech koruna (CZK).

The Czech Republic split from Slovakia on 1 January 1993 and is now one of the most stable and prosperous countries in Central and Eastern Europe. The Czech Republic is a member of the Organisation for Economic Co-operation and Development (OECD) (from 1995), the European Union (EU) (from 2004), and the North Atlantic Treaty Organization (NATO) (from 1999).

Maintaining an open investment climate has been a key element of the Czech Republic's transition to a functioning market economy. As a member of the European Union, with an advantageous location in the centre of Europe, a relatively low cost structure, and a well-qualified labour force, the Czech Republic is an attractive destination for foreign investment. Prior to its EU accession in 2004, the Czech government harmonised its laws and regulations with those of the European Union. In 2018, the economic growth was 2.9%. The conservative Czech financial system remained healthy and stable throughout 2019.

PwC Czech Republic employs more than 1,300 employees and 24 partners. Our tax practice focuses on corporate tax services, international assignment services, indirect tax services, tax compliance and accounting service, immigration services, and legal services. 

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%) 19
Corporate income tax (CIT) due dates
CIT return due date Within three months of the end of the tax period, and within six months for audited entities.
CIT final payment due date Within three months of the end of the tax period, and within six months for audited entities.
CIT estimated payment due dates Tax advances are paid semi-annually or quarterly.
Personal income tax (PIT) rates
Headline PIT rate (%) 15
Personal income tax (PIT) due dates
PIT return due date 1 April
PIT final payment due date 1 April
PIT estimated payment due dates Generally, monthly for employment income. In other cases, bi-annual or quarterly tax advance payments may be necessary.
Value-added tax (VAT) rates
Standard VAT rate (%) 21
Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy) Resident: 15 / 0 / 0;
Non-resident: 15 / 15 / 15 (35% WHT applies to residents of countries outside of the EU and EEA with which the Czech Republic does not have an enforceable DTT or TIEA)
Capital gains tax (CGT) rates
Corporate capital gains tax rate (%) Capital gains are subject to the normal CIT rate.
Individual capital gains tax rate (%) Capital gains are subject to the normal PIT rate.
Net wealth/worth tax rates
Headline net wealth/worth tax rate (%) NA
Inheritance and gift tax rates
Inheritance tax rate (%) NA
Gift tax rate (%) If taxable, the gift is subject to the normal PIT rate.

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.