In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
The Amendment to Law on Accountancy allows taxpayers to keep accounts in another fiscal period than the calendar year. The fiscal tax year must have 12 consecutive months.
- Accounting Standards
The Czech accounting system is based on double-entry bookkeeping and is largely consistent with the systems of other European countries with certain minor difference regarding, for example, financial leasing or depreciation of fixed assets. Czech accounting rules are determined by the Ministry of Finance. They come from the National Accounting Standards. Czech Republic tries to get accounting rules in accordance with IAS, IFRS.
- Accounting Regulation Bodies
Ministry of Finance of the Czech Republic
- Accounting Reports
Companies have to establish a balance sheet, a profit and loss account and annexs. Those accounts must be published in Czech, in CZK. More, companies obliged to have an audit must prepare the statement of cash flows and the statement of changes in equity. Corporations limited and societies listed on Stock Exchange have to publish the management report.
- Publication Requirements
The balance sheet and the profit and loss account must be prepared in accordance with the model which is on your disposal in the annexe of the Act. on Accounting.
Tax payers 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 must file their tax returns within six months following the end of the taxable period.
- Professional Accountancy Bodies
Union of Accountants
Chamber of Certified Accountants
- Certification and Auditing
Companies have to seek a statutory auditor to conduct an annual audit of the financial health of their organization. For more information, you can contact the Chamber of Auditors of the Czech Republic.
- Accounting News
Union of Accountants
Ministry of Interior, coll. of codes
- Nature of the Tax
Value added tax (VAT)
- Tax Rate
- Reduced Tax Rate
15% of VAT on food, books, special healthcare products.
A new 10% reduced VAT rate will be applied from 1 January 2015 on: medicines, pharmaceuticals, e-books and baby foodstuffs.
- Other Consumption Taxes
Excise taxes are also perceived (on tobaccos, oil productions, beer, wines and liqueurs), applied according to the type and the quantities of products. They are payable under 10 days after announcement of Customs. Energy tax on supplies of electricity, natural and other gases, and solid fuels are effective since January 2008.
More detailed information on excise duties on the European Commission website.
Learn more about Service Providers in the Czech Republic on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
- Tax Rate For Foreign Companies
All Czech tax residents are subject to these taxes on their worldwide income and capital gains, while Czech tax nonresidents are taxed only on their income from Czech sources.
The tax residency of a legal entity is its seat or place of effective management in the Czech Republic.
- Capital Gains Taxation
Capital gains are taxed at the normal corporate income tax rate.
- Main Allowable Deductions and Tax Credits
Tax deductible costs are similar to that in other countries (if incurred in order to generate, assure and maintain the taxable income): tax depreciation on assets, purchased material and services, wages, salaries and social security and health contributions.
Tax deductible items: charitable donations, research and development costs allowance, accumulated tax losses carried forward from previous year, tax relief. For any additional information.
- Other Corporate Taxes
Withholding taxes, value added tax, real property tax and real estate tax, tax on operators of photovoltaic power plants. For any additional information access the PKF Tax Guide on the Czech Republic.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
||Eastern Europe & Central Asia
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|Personal Income Tax
|Income over 48 times the annual average salary
- Allowable Deductions and Tax Credits
Employee's contribution to an old-age pension, a taxpayer's annual exemption, exemptions for non-working wife, disability allowance, high school / university students, etc. Tax deductions are granted for mortgage interest in Czech Republic, life and supplementary pension insurance, and gifts. Personal allowances are available for the taxpayer, her/his spouse and children.
- Special Expatriate Tax Regime
Taxable income includes earnings from dependent activities including benefits in-kind (e.g. housing allowances, use of a company car for private purposes, etc.), income from business activities, and income from capital, leasing and other sources.
For detailed information, consult the Taxation Guide provided by Czechinvest.
Learn more about Taxes and Accounting in the Czech Republic on Globaltrade.net, the Directory for International Trade Service Providers.
- Independence of Justice
- Equal Treatment of Nationals and Foreigners
- The Language of Justice
- Recourse to an Interpreter
- Sources of the Law and Legal Similarities
Czech Republic being a member of the European Union, the national law in the country needs to comply with the conditions of the Community legislation. Czech Republic has not accepted compulsory ICJ jurisdiction.
- Principle source of the law is a Constitution of the Czech republic with the Charter of Fundamental Rights and Basic Freedoms which is based on civil law system originating from Austro-Hungarian codes.
- All international agreements adopted by Czech parliament take priority over national legislation.
- Written Codes
- Findings of the Constitutional Court
- Checking National Laws Online
Czech law in English
Czech codes on-line, Businesscenter.cz (in Czech)
Learn more about Lawyers and Legal in the Czech Republic on Globaltrade.net, the Directory for International Trade Service Providers.
- General Information
Doing business in CR
Czech culture, customs and etiquettes
Czech business culture
Guide to Czech Republic
Guide to Czech Republic
- Opening Hours and Days
A typical Czech working day is 8:00 am to 4:30 pm, with a break for lunch. Closing days are Saturday and Sunday.
|New Year's Day
|Cyril & Methodius Day
|Jan Hus Day
|Czech Founding Day
|Struggle for Freedom Day
|St. Stephen's Day
Periods When Companies Usually Close
|No general closing periods
||People prefer to take their holidays during school holidays to stay with their children : in the summer (July-August), one or two weeks during Christmas, one week in February or March during the spring holiday (he date is not fixed and depends on regions and change every year). But in most cases the office stays open.
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Last Updates: October 2014