Taxation in Czech Republic

Income tax rates in Czech Republic are moderate and low. But social and health insurance in Czech Republic is one of the higher in EU. The corporate income tax is one of the most lowest in EU – in 2009 only 20 % (in 2010 only 19 %). In Czech Republic is a flat 15 percent personal income tax (effective from January 2008). The tax year for individuals and corporate is a calendar year. Other important taxes in Czech Republic are: VAT, social and health insurance and excise duties. In the most recent year, overall tax revenue as a percentage of GDP was 35.6 percent – it is below the average in EU. There are no local taxes in Czech Republic, only charges. There is no wealth tax in Czech Republic.

Bc. Petr Gola