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Direct Taxes

Taxation of legal entities

Corporate tax is levied on the profits of legal entities, primarily limited liability companies (s.r.o.) and joint-stock companies (a.s.). Although partnerships are legal entities under the Commercial Code, the profits of a general partnership (v.o.s.) are not subject to corporate tax: instead, each partner's share of the profits is taxed in his hands. In the case of a limited partnership (k.s.), the limited partner's share of the profits is subject to corporate tax in the hands of the k.s., while the general partner's share is taxed in the same way as in the case of v.o.s.

A branch or permanent establishment of a foreign company is generally subject to tax on the same basis as a company, although for so-called "non-trading" branches, i.e. those which do not invoice, it is possible to be taxed on a deemed profit basis, which will probably be a percentage of revenues generated in the Czech Republic, or a percentage of costs.

The current rate of corporation tax is 19%.

Capital gains are generally included in income and taxed at the same rates. For basic investment funds special 5% corporate income tax rate applies; for pension funds 0% corporate income tax rate applies. There is no tax consolidation within Czechia. Each company within a group is taxed individually, with no set-off of losses against profits between different companies.

Certain types of payments such as dividends, interest or royalties are subject to withholding tax. Withholding tax rate ranges from 5% to 35% depending on the type of income. The payer of withholding tax is the person/entity that pays the income which is subject to the withholding tax. The list below gives examples of income that is subject to the withholding tax.


financial lease payments paid to a non-resident of Czechia without a Czech permanent establishment


royalties, operating lease payments, copyright fees, dividends, other related distributions, etc. paid to a non-resident of Czechia without a Czech permanent establishment


royalties, operating lease payments, copyright fees, dividends, profit shares and other related distributions, etc


Dividends, interest or royalties paid to qualifying EU/EEA/Swiss company are exempt from withholding tax (specific rules apply). For dividends from 2008, the basic test for determining whether a parent/subsidiary relationship exists is the holding of at least 10% of the registered capital of the subsidiary for at least 12 months.


Taxation of business income

The tax treatment of income derived from business activities is broadly the same for natural and legal persons. The starting point for computing the taxable profits is the profit before tax disclosed by the accounts. This is then subject to adjustments under the Income Tax Act. Unless the Income Tax Act contains a provision to the contrary, income and expenses according to the accounts are taxable/deductible. Where capital gains form part of business profits, they are taxable as normal income.


Tax-deductible costs

The list of tax-deductible costs is similar to those common in other countries. Generally, costs are tax-deductible if incurred in order to generate, assure and maintain taxable income (for instance, tax depreciation of assets, purchased material and services, wages and salaries including social security and health insurance contributions paid by the employer, etc.).

In the case of some costs, there are further conditions stipulated by the Czech Income Tax Act limiting their deductibility; for example, some costs are deductible only when paid by the end of the relevant tax period (e.g. contractual penalties). Some other costs are tax deductible only up to the related revenues (e.g. assignment of receivables).

All costs considered in the relevant tax period as tax-deductible should be supported by accounting documentation proving their relation to the relevant tax period as well as providing information about the goods/services for which the costs were incurred.

Deductible items include:

  • tax depreciation of tangible assets
  • tax depreciation of intangible assets
  • accumulated tax losses carried forward from previous years
  • charitable donations
  • expenditure on research and development


Research and development cost allowance

Up to 100% of specific R&D expenses (or costs) incurred in a given tax year may be deducted from the tax base as a special tax allowance. These costs are deducted twice for tax purposes: once as a normal tax-deductible cost and then again as a special tax allowance. An additional 10% may be applied as an allowance from the difference by which the current year qualifying costs exceed those of the prior period. The following costs can be included in the tax allowance:

  • Direct costs (e.g. personnel costs of research and development engineers, consumed material, etc.)
  • Tax depreciation of fixed assets used for R&D activities
  • Other operating costs directly related to realisation of R&D activities (telecommunications fees, electricity, water, gas, etc.)

Eligible costs must be incurred in the course of generating, assuring and maintaining the taxable income (i.e. tax-deductible costs), and must be recorded separately from the taxpayer’s other costs. This allowance does not apply to the costs of purchased services and intangible results of research and development acquired from other entities (e.g. licenses), except for services purchased from listed R&D institutions. The costs supported from public sources cannot also be deemed eligible for this tax allowance.

The non-utilised allowance (e.g., due to tax loss in current year) can be carried forward for three subsequent years.

The taxpayer can apply the local competent Tax Office for a binding ruling in respect of research and development costs in the event that the taxpayer is not sure if particular research and development costs can be regarded as costs eligible for the allowance.


Accumulated tax losses carried forward from previous years

Losses incurred in the tax period can be carried forward for five subsequent tax periods and it is up to the taxpayer when such losses are actually utilised against taxable profits within this five-year period. Companies that have received investment incentives in the form of tax relief must utilize all previous losses against declared profits before they may claim the tax relief.

Last update: February 2016 Fact Sheet No.14 – Corporate Tax and Depreciation


There are additional restrictions for utilisation of accumulated tax losses if the company’s ownership structure changes by more than 25% or the company is merged or subject to another type of restructuring. In such case, the “same business” test applies which compares the activities causing the tax loss before the change of control or the merger and the activities generating the tax profit (which should be reduced by the tax losses) after the change of control or the merger. In case of doubts, the taxpayer may apply the Tax Office for a binding ruling whether the tax loss may be utilised in given year.


Charitable donations

The tax base may be decreased by gifts donated for specific reasons set forth by the Income Tax Act (social, health, education, etc.). The minimum value of a tax-deductible donation is CZK 2,000; the maximum reduction is 10% of the tax base reduced by deductible allowances, the R&D allowance and utilised tax losses. Again, a company that has received investment incentives in the form of tax relief must reduce its tax base by tax-deductible donations before it may claim the tax relief.



Tax depreciation is different for tangible and intangible assets. The Czech Income Tax Act sets forth the definition of tangible assets and intangible assets.

Tangible assets are any buildings/constructions and movable assets with an input price above CZK 40,000 whose useful life exceeds one year (moveable assets). Land is not depreciated for tax purposes. Tangible assets are divided into six depreciation categories with different depreciation periods. The classification of tangible assets by depreciation category is shown in the following table:¨


Depreciation category

Minimum depreciation period (in years)

computers and office equipment, measuring and control devices, etc.


cars, buses, machinery and equipment, lorries and tractors


metal structures, motors, metal products, machinery and equipment for the metals industry, ships, lifts, cranes, electric motors, ventilation and cooling units, etc.


electric mains, gas and oil pipelines, water mains, pillars, chimneys


buildings (factories), bridges, roads, tunnels, water works, cableways


buildings (hotels, administration/business/shopping centres)



The tax depreciation periods of intangible assets are:


Depreciation category

Minimum depreciation period

audio-visual products

18 months

software and intangible results of research and development

3 years

other intangibles

6 years


Investment incentive tax-relief

Companies that have received a Decision to Grant Investment Incentives can claim tax relief up to the maximum amount of state aid (i.e., the specific percentage of state aid is applied to the total amount of eligible costs specified in the Act on Investment Incentives and previously in the Decision to Grant Investment Incentives). Under the Czech Investment Incentives Scheme, investors may receive either partial (for investors who expand their existing business activities in Czechia) or full tax relief (for investors who are newly commencing their business activities in Czechia). Both kinds of tax relief can be utilised during ten consecutive tax periods.

Full tax relief is almost equal to the value of the tax liability for the relevant tax period (tax relief does not cover tax derived from interest income). The aim of partial tax relief (i.e., for expansion projects) is to offset the tax above the “base tax”. Partial tax relief in the relevant tax period is equal to the difference between the tax liability for the period for which tax relief will be claimed (adjusted by certain items and interest income) and the “base tax” liability (“base tax” is adjusted by the sector price-inflation index). The “base tax” liability is the higher tax liability shown in one of two tax periods immediately preceding the tax period for which tax relief may be claimed for the first time, i.e., in which general and special conditions were fulfilled. The “base tax” liability is calculated using the tax rate valid in the taxable period of the tax-relief calculation.

Strategic Investor (high-volume investment projects) can receive cash subsidy for acquisition of long-term tangible and intangible assets.

The new Regional Aid Guidelines for 2014-2020 (RAG) have been adopted by the European Commission and have entered into force on 1 July 2014. RAG has decreased the maximum level of permissible state aid to 25% in all regions in Czechia except Prague (with permissible state aid 0%).

The amended Act on Investment Incentives effective from 1 May 2015 newly adopts the following changes.

New Incentives:

·Determination of special industrial zones with a broader offer of forms of support

·Introduction of aid for data centres and customer-support centres (call centres)

·Expansion of regions with the possibility of a cash grant for job creation

·Increase of the cash grant for acquisition of fixed tangible and intangible assets

Removal of current limitations:

·Facilitation of transformation of companies in the tax-relief regime

·Possibility of renunciation the entitlement to tax relief

·Reduction of penalties for breach of the transfer-price condition

·Lowering of limits on job creation for technology centres and business support services centres

Taxation of individuals

The taxation of individuals depends primarily on their residence status. Residents of Czechia are subject to tax on worldwide income, whereas non-residents are subject to tax on Czech source income only.

Residents is defined as individuals or entities having a permanent home in Czechia, or spending 183 days or more in Czechia during the tax year (the year to 31 December).

Personal income tax is charged on:

  • employment income
  • business income
  • investment income
  • capital gains
  • any other income not within the above categories.

There are numerous exemptions, of which the most important are probably the exemptions from tax on gains from the sale of securities (including shares in an a.s.) which have been held for at least 6 months, and of an interest in a private company or partnership which has been held for at least 5 years.

There is a flat rate of 15% applicable on a super-gross salary (gross salary increased by 34 percent of employer part of Czech obligatory social security and health insurance contributions) This is either hypothetical (if the employee is not subject to the Czech social security scheme) or actually paid if the individual is subject to the Czech social security scheme.

From 1 January 2013, in addition to standard 15% flat rate, a 7% solidarity tax increase is imposed on annual gross income (sum of gross employment income and taxable self-employment income/or reduced by the actual tax loss from self-employment) exceeding CZK 1,296,288  (amount applicable for 2016). In the case of employees on Czech payroll, the solidarity tax increase is applied monthly on income exceeding 1/12 of the above annual threshold as an advance payment.

Other income except for employment and self-employment income is taxed at 15 percent.  Dividends and other income subject to withholding tax at source are not subject to any further taxation. Foreign source investment income is subject to a flat rate of 15%. 

Employees are subject to tax on income in all forms, whether in cash or in kind. In particular, benefits such as the provision of a car which is available for private use are taxable. There is little provision for private pension schemes in Czechia. As a result, contributions paid by the employer are, with restricted exceptions, taxable benefits. The following deductions and allowances can be applied by an individual:



  • Donations – minimum of 2% of personal income tax base or CZK 1,000 (approx. EUR 36), maximum of 15% of personal income tax base
  • Interests from a loan from building society – maximum of CZK 300,000 (approx. EUR 10,960)
  • Private pension insurance – except for first CZK 12,000 (approx. EUR 440), maximum of CZK 12,000 (approx. EUR 440)
  • Private life insurance – maximum of CZK 12,000 (approx. EUR 440)


  • Basic personal allowances – in the amount of CZK 24,840 (approx. EUR 910).
  • Dependent–spouse allowance – up to 24,840 CZK (approx. EUR 910) for a resident taxpayer whose spouse does not have annual taxable income higher than CZK 68,000 (approx. EUR 2,490).
  • Disability – from CZK 2,520 (approx. EUR 90) to CZK 16,140 (approx. EUR 590), depending on the extent of the disability.
  • Students – in the amount of CZK 4,020 (approx. EUR 150), can be applied up to 26 years of age.


  • Tax credit for each child living in the same household with resident. Annual tax credit is CZK 13,404 (approx. EUR 490) for the first, CZK 15,804 (approx. EUR 580) for the second and CZK 17,004 (approx. EUR 620) for any other.


An employee’s social security and health insurance contributions are calculated as 11% of gross salary. Employers must pay an additional 34% of all employees′ gross salaries to the Czech social security and health insurance authorities in 2016. The income of an employee is subject to the Czech mandatory social security and health insurance contributions (both employee and employers parts) unless otherwise exempt according to EU regulations or bilateral social security treaties (e.g. granting of an A1 certificate/certificate of coverage). The rates for employee and employer are as follows:



Employer (%)

Employee (%)




Sickness insurance



Unemployment insurance



Medical insurance







The annual base for social security contributions is capped. For 2016 the cap amounts to 48 times the average monthly salary (i.e. CZK 1,296,288). There is no cap for health insurance contributions.

International tax issues

Companies having their "seat" in Czechia are subject to Czech tax on their worldwide income. Until 2001, a company's seat was defined simply as where it was registered. From January 2001, however, the definition has been extended to include the place where the company is managed. Such companies are referred to below as Czech resident. Other companies (non-resident) are subject to tax on Czech-source income only, subject to the provisions of double taxation agreements.

Foreign-source income of Czech resident companies is generally taxable, subject to the provisions of double taxation agreements. The income of foreign branches or permanent establishments of Czech residents is included in taxable profits. Dividends from foreign companies form a separate source of income which is taxable at a special rate, currently 15%.

Under some double taxation treaties, however, the income of a permanent establishment in other state is exempt from Czech tax. In such a case, expenses related to that income are not tax deductible.

Relief for foreign taxes is given by credit only if there is a double taxation agreement with the other state. Otherwise, the foreign tax can only be treated as an expense.

Non-residents are subject to Czech tax on:

  • income of a permanent establishment in Czechia
  • employment income from duties performed in Czechia
  • income from services performed in Czechia
  • income from the sale or use of real estate in Czechia
  • income from performance and sporting activities in Czechia
  • royalties, dividends and other profit distribution , interest, and lease rentals
  • capital gains on the sale of securities or sale of an interest in a private company or partnership where the buyer is a Czech resident or is a permanent establishment of a non-resident
  • lottery and gambling winnings in Czechia
  • alimony and pensions arising in Czechia
  • income arising from reductions in capital
  • income from payment of a receivable acquired by assignment

These tax liabilities are to some extent mitigated by tax treaties, where applicable. In particular, where there is a treaty income from services can be taxed only if the service provider has a permanent establishment in Czechia and income from employment can be taxed only if the employee is employed by a Czech company or a permanent establishment, or if he or she spends more than 183 days in Czechia.

Tax administration

Generally, taxpayers must file tax returns within three months following the end of the tax period. Czech legal entities that are required to prepare audited financial statements or whose tax return is signed by a registered tax advisor must file their tax returns within six months following the end of the tax period. In certain cases (e.g., a merger), the statutory period for submission of the tax return is reduced.

Corporate income-tax liability (i.e., the difference between the sum of the advance tax payments paid during the relevant tax period and the total tax liability) is payable by the deadline for submission of the tax return. If the reported tax liability exceeds the statutory threshold, the taxpayer is obliged to pay advance tax payments on a quarterly (if the last known corporate income tax liability exceeded CZK 150,000) or half-yearly basis (if the last known corporate income tax liability was between CZK 30,000 and CZK 150,000). If the last known corporate income tax liability is less than CZK 30,000, no advance payments are required.

If the tax return is not filed or not filed on time, the tax authorities levy against the taxpayer a penalty of 0.05% of due tax per each day of such delay, up to 5% of the tax liability. In case of tax loss, the tax authorities levy a penalty of 0.01% per each day of such delay, up to 5% of the tax loss. The penalty cannot exceed CZK 300,000. The penalty does not apply in the first 5 days following the deadline.

If the tax is not reported and paid correctly and the Tax Office discloses such incorrectness then the Tax Office assess additional due tax (or lower tax loss) and levy a penalty (fine) and a late-payment interest on the taxpayer. The penalty is calculated as 20% of the additionally assessed tax or 1% of a reduced tax loss, and the late-payment interest is calculated as the repo rate of the Czech National Bank effective as of the first day of each half year increased by 14 percentage points.

Indirect taxes

Value added tax (VAT)

The Czech VAT Act is based on EU Directives relating to VAT. VAT is generally imposed on:

  • supplies of goods and provision of services in Czechia
  • goods imported to Czechia or acquired in Czechia from other EU member states


Businesses are generally entitled to reclaim input VAT. Certain supplies are VAT exempt without entitlement to reclaim input VAT (e.g. healthcare, education, financial services, insurance services and long-term rent of immovable property). Export of goods and supplies of goods to EU are VAT exempt with a right to recover input VAT. Generally, services provided to businesses established abroad are not taxable in Czechia. On the other hand, businesses are, in general, obliged to account for VAT in terms of the reverse-charge principle once they acquire a service from a foreign provider.


As elsewhere in the European Union, supplies may be taxable, exempt (with or without the right to VAT deduction) or outside the scope. Exempt supplies with the right to deduct are sometimes referred to as ‘zero-rated’. Businesses making exclusively taxable or zero-rated supplies generally qualify for full deduction of input VAT (the VAT they have incurred making supplies). Businesses making exclusively exempt supplies without the right to deduct do not qualify for deduction of input VAT. Businesses making a mixture of exempt supplies without the right to deduct and taxable or zero-rated supplies may fully deduct only the input VAT directly incurred on making the taxable or zero-rated supplies. Partial deduction will be available for overheads and other indirect costs.


There are three VAT rates:

  • 21% for most goods and services;
  • 15% for some selected goods and services (most foodstuffs, certain passenger transport, most books, newspapers and magazines, admission to cultural events, hotel accommodation and medical and dental care);
  • 10% for some selected goods (initial and continuing baby food, selected pharmaceutical products, printed books, books for children, sheet-music).


Registration for VAT purposes

Businesses seated in Czechia whose turnover exceeds CZK 1,000,000 (approx. USD 40,284) in any consecutive 12-month period must register as a VAT payer with the tax authorities. For non-resident businesses, there is no registration threshold, but they must register as a VAT payer if they:

  • make any supply subject to Czech VAT (unless the liability to declare and pay VAT is shifted to the recipient of the supply), or
  • supply goods from Czechia to another EU member state


Under certain circumstances, businesses not registered for VAT to whom VAT liability arises due to acquired goods or services become persons identified for VAT. A person identified for VAT only pays VAT from received supplies without being entitled to recover related input VAT.


VAT returns

The basic taxable/reporting period is a calendar month. A VAT payer can opt for a quarterly taxable/reporting period provided that certain conditions are met (e.g. his turnover in the previous calendar year did not exceed CZK 10 million). Non-Czech entities may only pay VAT quarterly, i.e. the monthly taxable period is not allowed.

The VAT liability has to be paid by the due date for submission of the VAT return. A Czech VAT payer is obliged to submit the VAT return within 25 days of the end of the tax period, even if he has no tax liability. The tax liability is payable within the same 25 day period, with the exception of VAT on imported goods, where the tax due date is subject to customs regulations.

European Sales List - tax evidence

The ESL must be completed if a VAT registered business:

  • makes supplies of goods to a person registered for VAT in another EU member state or
  • makes a transfer of its own goods between Czechia and another EU member state or
  • acts as the intermediary in a triangular transaction between VAT registered traders in other EU member states.

The ESL must be submitted every calendar quarter by the 25th day of the following month. A penalty of up to CZK 2 million may be imposed for failure to submit the ESL.


Intrastat Declarations - statistical evidence

VAT registered businesses that dispatch or receive goods to or from other EU member states which exceed the relevant annual thresholds (CZK 8 million for dispatches or CZK 8 million for goods received) must complete a supplementary declaration each month. Further information must be provided if the value of goods dispatched or received exceeds CZK 100 million. There may be a penalty of up to CZK 1 million for failure to submit the Intrastat declaration.


The items listed below are exempt from VAT:

  • insurance services
  • financial services
  • postal services
  • betting, gaming and lotteries
  • education
  • health and welfare
  • TV and radio broadcasting
  • transfers of land (excluding building land)
  • transfers of immovable property (buildings, flats and non-residential premises) within 3 years of acquisition of the property or its approval by the construction authorities
  • financial leasing of immovable property except where the contract is concluded within 5 years of acquisition of the property or its approval by the construction authorities
  • letting of land and immovable property (apart from the letting of parking spaces and safe deposits boxes and short-term lettings).


Energy tax

Energy taxes are levied on supplies of electricity, natural and other gases, and solid fuels (hereinafter referred to collectively as “energy”). The payers of energy tax are either suppliers of energy selling energy in Czechia to end-users, or operators of distribution or transmission systems. Subject to energy tax are also entities that use tax-exempt energy for purposes other than those that are exempt or that use untaxed energy.


The tax on electricity is levied at the rate of CZK 28.30 per MWh. The tax on gas is levied at rates varying from CZK 30.60 per MWh to CZK 264.80 per MWh, depending on the type of gas, the purpose of its use and the date when the tax liability arises. The tax on solid fuels is levied at the rate of CZK 8.50 per GJ of caloric value. End-users can utilise tax exemptions when the energy products are used for specific purposes.


Road tax

Road tax is payable on road vehicles and their trailers, registered and operated for business purposes in Czechia. The tax is calculated according to the engine size for passenger cars or weight and number of axles for other commercial vehicles. The rates range from CZK 1,200 (cars with engines up to 800 cm3) up to CZK 4,200 (cars with engines over 3000 cm3) and from CZK 1,800 up to CZK 50,400 (on trucks over 36 tonnes). The tax period is a calendar year.


Freight vehicles weighing up to 12 tonnes with an electric or hybrid engine, or running on LPG (liquefied petroleum gas),

CNG (compressed natural gas), or E85 are exempt from the road tax.


Taxpayers are required to submit their tax return for the tax period (calendar year) by 31 January of the following year.

Excise duties

Excise duty is payable on hydrocarbon fuels and lubricants, spirits, wine and beer and tobacco products. The tax is calculated as a fixed amount per unit of the product concerned and is levied on the producer (importer). Tax levied on cigarettes is calculated as a combination of a fixed amount and a percentage of the selling price.


The new Excise Duty Act has implemented EU rules governing the production of the above products and their release into free circulation. These products must generally be produced in a tax warehouse. Once removed from the tax warehouse they must be released into free circulation and excise duty must be paid, or they can be transported under a suspension exemption to a licensed trader in another EU member state or to another tax warehouse. They can also be exported under the suspension system outside the EU.

The excise duty is paid at the moment the suspension regime is terminated. A licensed trader cannot further store or sell the products under the suspension system and he is obliged to pay the excise duty once he receives the goods.

Excise duty is administered by the customs authority.

Real estate tax

The Real Estate Tax Act levies taxes on the owners of immovable property situated in Czechia. Different rates apply to unimproved land, agricultural land and structures.



Land tax is imposed on plots of land entered in the Land Registry. The rate may be set as a percentage of the acquisition price or at a set amount per square metre.


Agricultural land is taxed based on its acquisition price. The tax rates are as follows:

  • arable land, hop fields, vineyards, gardens, orchards – 0.75%
  • permanent grasslands, forests and farm ponds for intensive fish farming industry – 0.25%

The tax rates for other types of land are set for each 1 m2:

  • building plots – CZK 2 per square meter
  • other types of land – CZK 0.2 per square meter
  • paved areas of land used for business or in connection with, for serving
    • agricultural production, forestry and water management – CZK 1.00 per square meter
    • industry, construction, transport, energy, other agricultural production and other types of business – CZK 5.00 per square meter

The basic rate of tax multiplied by a coefficient ranging from 1 to 4.5 reflecting the location of the property, the highest coefficient is for land in Prague.


Buildings and units

Building and unit tax is calculated according to the registered built area. The tax rate ranges from CZK 2 to CZK 10 per square meter in the case of business premises and from CZK 2 to CZK 8 per square meter for residential premises and garages. The tax rate may be increased by CZK 0.75 per square meter for each additional floor exceeding 1/3 of the building built-up area.


Real estate tax is generally payable on an annual basis by the owner, although in specific cases the user or the lessee is the taxpayer. All property owners must file tax returns for the respective calendar year with the relevant Tax Office by 31 January of that calendar year. The tax return generally does not have to be filed if conditions relevant for the tax assessment have not changed from the previous tax return. There is a broad range of exemptions, to which local authorities may add to a certain extent.


Real estate transfer tax

Real estate acquisition tax is charged at a flat rate of 4% of the higher of:

  • sale price of a property or
  • 75% of the comparative tax value (usual market price determined by a statutory expert or calculated based on guidelines, taking into account the location, size and type of real estate).


From November 2016, the tax is payable by the buyer. Certain transactions (e.g. mergers and demergers) are not subject to real estate acquisition tax.

Inheritance and gift tax

Inheritance and Gift Taxes were abolished with effect from 2014, but most types of inheritance and gift became subject to income tax. Inheritances are generally tax-exempt; gifts are exempt if made between certain family members and between persons living in the same household for a period at least one year before the gift was made.


Moreover, gifts up to an annual value of CZK 15 000 are generally exempt from income tax. Gifts made abroad are generally subject to 15% withholding tax unless the relevant double tax treaty provides otherwise.


As of 1 January 2015, the taxpayer is obliged to report any exempt income that exceeds CZK 5,000,000 (approx. USD 201,418) per one individual income. Taxpayers must file the notification within three months after the end of the tax period (or within six months if a power of attorney for filing the tax return is submitted by a certified tax advisor).


Source: CzechInvest