Reporting of certain tax-exempt income – The limit for reporting tax-exempt income or income that is not subject to tax in the Czech Republic under a double taxation treaty will increase to CZK 300,000 a month per each nonresident. Under the amendment, the taxpayer will only have to report income not subject to tax once a year, always by 31 Capital gains are taxed at a rate of 20 percent, close to the OECD average of 19 percent and aligned with its corporate tax. In contrast, the French individual income tax system is the least competitive of all OECD countries. France ’s top marginal tax rate of 45.9 percent is applied at 14.7 times the average national income. Penalties related to tax. Delayed filing of the tax return: 0.05 % of tax assessed, 0.01 % of tax loss, max. 5% or CZK 300,000. Delayed payment of the due tax: the CNB’s annual repo rate at the first day of the relevant calendar half-year increased by 8%. Delayed or missing registrations at tax authorities: up to CZK 500,000. Corporate income tax Since 2010, the corporate tax has been set in the Czech Republic at 19%. The income of investment funds, investment companies, mutual funds, and pension funds is taxed at a minimum interest rate of 5%. The new legislation also introduces progressive income taxation of individuals at rates of 15% and 23% and abolishes the solidarity tax of 7%. The rate of 23% will be applied to individuals with an income exceeding 48 times the average salary (for 2021 it is CZK 1,701,168). Corporate Taxes. Company Tax. 19%. Tax Rate For Foreign Companies. Czech resident companies are taxed on their worldwide income, while non-resident companies are required to pay corporate taxes only on income sourced in the Czech Republic. Foreign and domestic companies are subject to the same tax treatment. Calculate it on the official calculator of the Ministry of Finance of the Czech Republic. Flat-rate tax and tax returns. You don't usually have to file a tax return under the flat-rate tax scheme. The exception is if you breach one or more of the criteria for entering the flat-rate scheme during the tax year. Although there are some cases when you make money and you don’t have to pay any income tax on your earnings at all, most income is actually taxable in Czech Republic. According to § 3 of the Czech Income Tax law (586/1992) for a human (and not a company) the following types of income are considered taxable, and therefore should be included .

czech republic income tax rate