Czechia has a corporate income tax rate of 21% for the tax year starting in 2024 (previously 19%). Capital gains are subject to the same rate as regular corporate income tax. Prepaid taxes are paid every half year or quarter. The tax return and payment due date is within three months after the end of the tax filing period (or four months if submitted electronically), or six months for entities that have been audited or for entities whose tax returns are submitted by registered advisors. The general VAT rate is 21%. Non-residents are subject to a 15% withholding tax on dividends, interest, and royalties (35% for recipients resident outside the EU and EEA in a state without a tax treaty or tax information exchange agreement with Czechia), while residents are only subject to a 15% withholding tax on dividends. There is no withholding tax for residents on interest and royalties.
The tax year starting in 2024 is 21 (previously 19).
event
CIT Return Due Date:
Within three months after the end of the tax filing period (or four months if submitted electronically), or six months for entities that have been audited or for entities whose tax returns are submitted by registered advisors.
event_available
CIT Payment Due Date:
Within three months after the end of the tax filing period (or four months if submitted electronically), or six months for entities that have been audited or for entities whose tax returns are submitted by registered advisors.
today
CIT Estimated Payment Due Date:
Prepaid taxes are paid every half year or quarter.
Capital gains are subject to the normal corporate income tax rate constraints.
Effective Tax Rate (ETR)
percent
Composite Effective Average Tax Rate:
20.31%
percent
Composite Effective Marginal Tax Rate:
20.73%
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The Czech Republic has a well-structured tax system with various types of taxes applicable to businesses and individuals. The Value-Added Tax (VAT) is generally charged at 21% on supplies of goods and services within the country. Some goods and services, such as groceries, medication, and certain cultural and hotel services, are taxed at a reduced rate of 12%, starting January 2024. Books, in printed or electronic form, are VAT-exempt from the same date. Exports and some services are exempt from VAT under specific conditions, and VAT deductions for personal cars are capped at CZK 420,000.
Corporate Income Tax Rate: The CIT rate is 21% for tax periods starting in 2024 (previously 19% for earlier periods). Czech resident companies are taxed on worldwide income; non-residents are taxed only on Czech-sourced income.
Special rates: A 15% rate applies to dividend income received by Czech resident entities from non-resident entities. A 5% rate applies to certain investment funds; pension funds are taxed at 0%.
Windfall Tax (2023-2025): A 60% CIT surcharge applies to excess profits of large banks and energy companies. Total effective rate on excess profits: 79% (2023) / 81% (2024-2025).
Pillar Two – Global Minimum Tax: Czech Republic has implemented GloBE rules: IIR effective from 31 December 2023, UTPR from 31 December 2024, and QDMTT of 15% from 31 December 2023. Multinational groups with consolidated revenue exceeding EUR 750 million are in scope.
Personal Income Tax (PIT) is levied at 15% on the part of the tax base up to 36 times the average wage and at 23% on the part above it. The PIT return must be filed by 1 April (or 1 May if filed electronically), with tax advances required monthly or quarterly for employment income. For non-employment income, different rules may apply based on the taxpayer's individual profile.
Withholding Tax (WHT) applies to dividends, interest, and royalties. For residents, the rates are 15% for dividends, 0% for interest, and 0% for royalties. For non-residents, the rates are 15% across dividends, interest, and royalties, with a higher rate of 35% for countries outside the EU and EEA without enforceable tax treaties.
The Czech Republic also imposes a gambling tax on various gaming activities. The tax rate for lotteries and technical gambling, including web-based operations, is 35%, while other gambling games such as card games, roulette and betting are taxed at 30%. The tax base is determined by gross gaming revenue, calculated as bets minus pay-outs.
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