Czech Republic

Corporate income tax (CIT) applies to the profits generated by all companies, including branches of foreign companies. Corporate partners in general partnerships (i.e. unlimited) and corporate general partners (i.e. unlimited) in a limited partnership are subject to CIT on their share of the profits in the partnership.

Czech resident companies are required to pay CIT on income derived from worldwide sources. Non-resident companies are required to pay CIT on income sourced in the Czech Republic.

The CIT rate is 19% and applies to all business profits, including capital gains from the sale of shares (if not exempt under the participation exemption regime). In 2023-25, a windfall tax (60 % corporate income tax surcharge) applies to excess profits of large banks and companies within the energy sector over their average past profits.

There is a special CIT rate of 15% levied on dividend income of Czech tax resident entities from non-resident entities (unless subject to participation exemption).

A 5% CIT rate applies to income of certain investment funds, and a 0% CIT rate applies to pension funds.

Local income taxes

There are no regional or local income taxes in the Czech Republic.