Taxes in the Czech Republic
The Czech Republic is a small country located in the very center of Europe. A state with a long history and a colorful population of 10 people.
The capital is Prague, a city that attracts a huge number of tourists, known for its original architecture and high level of service. The Czech Republic has a unique location at the crossroads of trade routes from Europe to Asia.
The state joined the European Union relatively recently, but has already managed to modernize its political, legal, economic, social and other spheres. The Czech Republic belongs to the industrial type.
The main industries in the Czech Republic are: metallurgy, mechanical engineering, chemical and food. The tourism and service sectors play an important role in the economy and overall development of the state.
Thanks to its development and prosperity, the Czech Republic is becoming a very attractive place for the development of commercial areas. This European state has a fairly flexible tax system, so businessmen and commercial organizations often choose the Czech Republic to develop their own business.
Register a company in the Czech Republic, open a bank account The E-COMMERCE BROKER Company will help you develop an effective scheme for doing business in the Czech Republic. Our specialists are well versed in the peculiarities of the Czech tax system, therefore they develop the optimal tax management strategy.
Taxation system in the Czech Republic
Taxes in the Czech Republic, as throughout Europe, they are divided into:
- direct - these include income tax, real estate tax and transfer tax;
- indirect - VAT, excise taxes, customs duties.
The Czech Republic has signed an agreement with a number of countries, according to which double taxation can be avoided. Legal entities may have resident status, these include those who are officially registered as a legal entity in the Czech Republic, conduct their activities here and receive income from it, as well as non-residents - registered in another country, but operating in the Czech Republic.
- Income tax in the Czech Republic is calculated at a rate of 19%. This is the standard rate for businesses. At the same time, qualified investment funds are taxed at a rate of 5%, and pension funds are exempt from income tax.
- VAT at a general rate of 21%. Reduced rates apply for different product groups:
- 15% - for food products falling into the main group, a number of pharmaceutical products, various medical equipment, heating;
- 10% - for baby food, pharmaceuticals, books, gluten-free flour products.
- Excise tax.
The excise tax rate is determined by EU legislation and is fixed for each type of goods. Excise tax is imposed on tobacco, alcohol, and fuels and lubricants.
- Tax on dividends, interest, royalties and interest is levied at 13% at the standard rate, and 35% at the inflated rate, which applies to funds that go to the treasury of those countries with which the Czech Republic has not signed an agreement on the avoidance of double taxation.
If transport is used for commercial activities, you will also need to pay a toll, the amount of which depends on the engine size of a passenger vehicle or the number of axles for a truck.
Business assistance from E-COMMERCE BROKER
The professionals of our company will not only register a business in the Czech Republic, but will also help optimize the tax burden to your enterprise. Thanks to our comprehensive support, you will be able to successfully develop your commercial area and receive a stable income from it.
