Czech Republic

Corporate - Branch income

Last reviewed - 20 July 2020

A foreign company can trade in the Czech Republic through a Czech branch. A branch usually creates a Czech PE of the foreign entity for CIT purposes (depending on the character of the activities carried out through the branch). The basis of taxation is the same as for corporations (i.e. tax base is calculated as taxable revenues less tax-deductible costs).

A branch is liable for tax on its attributable profits at the standard CIT rate. From 2018, branches of foreign companies may request for a binding ruling on the tax base determination.