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Czech Republic
Overview
Last reviewed - 09 February 2024The 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 North Atlantic Treaty Organization (NATO) (from 1999), and the European Union (EU) (from 2004).
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.
The Czech economy was growing six years in a row prior to 2020. However, in 2020, due to the impact of global COVID-19 pandemic, the gross domestic product (GDP) declined by -5.6%. In 2021, the GDP increased by 3.3%, and in 2022, there was an increase by 2.4%. In 2023, the GDP declined by -0.4%.
PwC has been present in the Czech Republic since 1990. Our tax practice focuses on corporate tax services, indirect tax services, selected personal income tax services, tax compliance and accounting services, legal services, and people and organisation services.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
21 for tax periods starting in 2024 (19 before then) |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
Within three months of the end of the tax period (four months if filed electronically), and within six months for audited entities or entities whose tax return is filed by a registered advisor. |
| CIT final payment due date |
Within three months of the end of the tax period (four months if filed electronically), and within six months for audited entities or entities whose tax return is filed by a registered advisor. |
| CIT estimated payment due dates |
Tax advances are paid semi-annually or quarterly. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
23 |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
1 April (or 1 May for electronic filing) |
| PIT final payment due date |
Within the tax return filing deadline (i.e. 1 April / 1 May). |
| 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 (%) (Dividends/Interest/Royalties) |
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 | |
|---|---|
| Headline corporate capital gains tax rate (%) |
Capital gains are subject to the normal CIT rate. |
| Headline 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 | |
|---|---|
| Headline inheritance tax rate (%) |
NA |
| Headline gift tax rate (%) |
If taxable, the gift is subject to the normal PIT rate. |
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