Czech Republic Tax UpdateJuly 2020
The Czech president signed on June 19,2020 a decree relating to loss carryback rules.
Up to now losses could be carried forward up to five years.
According to the new rules losses for tax periods ending on or after June 30, 2020 can be carried back to the preceding two tax periods.
The loss to be carried back is limited to a ceiling of CZK 30 million.
Czech Republic Tax UpdateMarch 2020
The Czech ministry of finance announced on March 24, 2020 several tax reliefs aimed to assist businesses facing the coronavirus economic effects.
An important relief will enable tax payers to carryback losses in 2020 against their reported income for tax purposes in the previous years 2018 and 2019.
The tax pares will have ,in that case, to file new amended reports for 2018 and 2019.
Czech Republic V.A.T. CutOctober 2019
According to a new approved amendment the standard 21% V.A.T. rate will be reduced in the period from April 1, 2020 or a near date. The reduced V.A.T. rate will be reduced from 15% to 10%.
Czech Republic Ghana Tax TreatyMay 2017
The Czech Republic and Ghana signed on April 11, 2017 a double tax treaty, DTA, between the two countries.
According to the DTA the tax withholding rates will be 6% for dividends, 0%/10% for interest and 8% for royalties.
Czech Republic Iran Tax TreatySeptember 2016
The 2015 double tax treaty, DTA, between the two countries entered into force on August 4, 2016 applying from January 1, 2017.
According to the DTA the tax withholding rates will be 5% for payment of dividend, 0%/5% for interest and 8% for royalties.
Czech Republic Turkmenistan Tax TreatyApril 2016
The Czech Republic and Turkmenistan signed on March 18, 2016 a double tax treaty, DTA between the two countries.
When in effect the tax withholding rates according to the DTA will be 10% for payments of dividends, royalties and interest.
Czech Inheritance and Gift TaxMay 2014
Up to December 31, 2013 inheritance and gift tax in the Czech Republic were subject to special tax rates from 7% to 40%.
Starting January 1, 2014 inheritance and gifts are taxed at the general tax rates for individuals.
Czech V.A.T. IncreaseJanuary 2013
Starting January 1, 2013 the new standard V.A.T. rate in the Czech Republic is 21% compared to the previous 20% rate.
The new reduced V.A.T. rate is 15% compared to the previous 14% rate.
Czech Republic Switzerland Revised Tax TreatySeptember 2012
The Czech Republic and Switzerland signed on September 11, 2012 a protocol amending the existing double tax treaty, DTA, between the two countries.
The revised DTA includes inter –alia provisions on exchange of information in line with the OECD model.
According to the protocol the tax withholding for payment of dividend will not exceed 15%.
If a company holds at least 10% in the capital of the paying company dividend will be exempt from tax withholding.
Payment of dividend to national banks or pension funds is tax exempt.
Czech Republic's New 14% Reduced VAT RateJanuary 2012
Starting January 1, 2012 the new reduced VAT rate is 14% replacing the previous 10% rate.
The reduced VAT rate relates to food and medicines, books, public transport etc.
Starting January 1, 2013 there will be a single 17.5% standard VAT rate while the reduced VAT rate will be abolished.
Czech Republic Hong Kong New DTAJune 2011
The Czech Republic and Hong Kong signed on June 6 a new double tax treaty, DTA, between the two countries.
The treaty which is based on the OECD standards on exchange of information also specified reduced tax withholding rates .Inter-alia , tax withholding rate of 5% for dividend, exemption of tax withholding for interest and 10% for royalties.
For Hong Kong the new treaty is its 21st double tax agreement.
The double tax treaty will come into force after ratification on both sides.
More info www.ird.gov.hk
Czech Republic Cyprus New DTAJanuary 2010
The double taxation tax treaty between the two countries which was signed on April 28, 2009 entered into force on January 1, 2010. The new DTA has some amendments including, inter alia, new tax withholding rates. The new tax withholding rates are 0% for interest, 0%/5% for dividends and 0%/10% for royalties.
Czech Republic Tax Rates 2009April 2009
From 1.1.2009 the new czech corporate income tax rate is 20%, compared to 21% in 2008.
The personal income tax rate remains a flat 15% , same as in 2008.
The social security rate for employees was reduced from 12.5% to 11%.
There are no changes in the standard and reduced V.A.T. rates compared to 2008.
Czech Republic New Income Tax RatesJanuary 2008
From 1.1.2008 the new Czech corporate tax rate is 21%, replacing the 2007 corporate tax rate of 24%.
The Czech corporate tax rate would go down to 20% in 2009 and 19% in 2010.
The new income tax rate for individuals is a flat 15% rate, replacing the 2007 rates of 12% to 32%. The 15% flat rate would be reduced to 12.5% from 2009.
From 2008 the joint tax assessment for married couples is cancelled.
In 2008 the standard Czech VAT rate remains 19%, while the reduced VAT rate is 9%.
Czech Corporate Tax CutAugust 2007
The parliment voted for a reduction of the Czech corporate tax, from the current 2007 24% tax rate to 19% in 2010.
According to the vote the Czech corporate tax rate would be reduced to 21% in 2008, 20% in 2009 and 19% in 2010.
The proposed cut has yet to be approved by the Czech senate.
The Czech Republic is expected to adopt the EURO in the year 2012.
Czech Republic Income TaxMARCH 2007
he Czech prime minister declared that a major tax reform is nearly certain soon.
According to the reform, a new flat income tax rate of 15% would be introduced.
At present the Czech income tax rates are 24% for companies and 12%-32% for individuals.
Czech Republic Double TaxationJANUARY 2006
From 1.1.2006 there are amended double taxation treaties, replacing existing treaties.
The new treaties are between the Czech Republic and France, Moldavia, Norway and Serbia and Montenegro.
Czech Republic Income taxJANUARY 2005
From January 2005 the new corporate income tax rate in the Czech Republic is 26%(2006-24%).
There is no change in the individual income tax rate,compared to 2004.
Czech Republic V.A.TMAY 2004
From 1.5.2004 the new v.a.t rate in the Czech Republic is 19%. (previous rate-22%).
Czech Republic new corporate income taxJANUARY 2004
From 1.1.2004 the new corporate income tax rate in Czech Republic is 28% (previous rate-31%).
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