10 Facts about taxation in the Czech Republic | Infographic

5% is the rate of basic investment funds 

 0% is the rate of pension funds

*The new CIT rate applies to all tax periods starting from 1 January 2024

Income from sale of participation in a subsidiary (CZ or another EU Member State resident).

Dividends and income from sale of participation in a subsidiary if the subsidiary is a nonEU resident from a “double tax treaty” country and is subject to corporate income tax which is not lower than 12%.

35% for payment outside EU/EEA 

Note: Dividends paid by a subsidiary to parent company, that holds 10% share uninterrupted in the past 12 months, are exempt from taxation. Interest and Royalties could be also a tax exempt under the implemented EU directive.

21%

12% is the reduced VAT rate which applies to specific goods, such as food and infant nutrition, drinking tap water, animal feed, selected dairy drinks, plants, special healthcare products or pharmaceutical products etc. 

It also applies to selected types of services: water and sewer charge, public transportation including non-regular passenger transport, hotel accommodation, catering or entry to cultural and sport events etc.

15% is the rate on personal income up to CZK 1,582,812 (approx. EUR 65,951), which monthly equals an employment income up to CZK 131,901 (approx. EUR 5,496).

23% is the tax rate in 2024 on income exceeding CZK 1,582,812 (approx. EUR 65,951).

24.8% for social security, applied up to annual cap

9% for health insurance

7.1% for social security, applied up to annual cap

4.5% for health insurance

Losses generated from independent activities and rental activities may be set off against all types of income, except the employment income. 

2 years: standard carry-back period, max. amount of CZK 30 million  (approx. EUR 1,250,000)

5 years: standard carry-forward period

Within the personal income tax base, losses generated from independent activities and rental activities may be set off against all types of income, except the employment income.

Sale of house or flat, if the seller has a permanent residence for min. 2 years before the sale.

Sale of immovable asset, when the period of ownership exceeded 5/10 years before the sale or income from property bought after 2021 is used for further housing needs (notification is required).

Sale of movable property, with exceptions (e.g. car owned more than 1 year).

Sale of a share in a LLC, if the share was held for at least 5 years before the sale.

Sale of securities, if held for min. 3 years before sale or if total income is less than CZK 100,000, i.e. EUR 4,160.

Pensions up to CZK 680,400, i.e. EUR 28,350.