Czech Republic Corporate Income Tax

Corporate income tax rates and base

Czech resident companies are taxed on worldwide profits at a flat corporate income tax rate; the rate rose to 21% for periods starting in 2024. Certain entities and income types have special rates.

• Standard corporate income tax rate — 21% (Income Tax Act (Act No. 586/1992 Coll.))
• Basic investment fund rate — 5% (applies to qualifying basic investment funds) (Income Tax Act (Act No. 586/1992 Coll.))
• Pension fund rate — 0% (Income Tax Act (Act No. 586/1992 Coll.))
• Separate tax base (certain foreign-source dividends/income) — 15% (Income Tax Act (Act No. 586/1992 Coll.))
• Tax base — Accounting profit per Czech accounting standards, adjusted for non-deductible items and tax adjustments (Income Tax Act (Act No. 586/1992 Coll.))
• Withholding tax on dividends — 15% general; 35% to non-EU/EEA residents without a tax treaty or TIEA; 0% under EU Parent-Subsidiary exemption for qualifying holdings (Income Tax Act (Act No. 586/1992 Coll.))
• Withholding tax on interest — 15% general; 35% to non-EU/EEA residents without a treaty or TIEA; reductions/exemptions under treaties and EU Interest & Royalties Directive (Income Tax Act (Act No. 586/1992 Coll.))
• Withholding tax on royalties — 15% general; 35% to non-EU/EEA residents without a treaty or TIEA; reductions/exemptions under treaties and EU Interest & Royalties Directive (Income Tax Act (Act No. 586/1992 Coll.))
• Tax loss carryforward / carryback — Losses may be carried forward 5 years; carryback allowed for up to 2 preceding years (capped at CZK 30 million) (Income Tax Act (Act No. 586/1992 Coll.))
• Filing deadline — 3 months after the end of the tax period; 4 months if filed electronically; 6 months if filed by a tax advisor or where a statutory audit is required (Tax Procedure Code (Act No. 280/2009 Coll.))
• Payment deadline and advances — Final tax due by the return deadline; advance payments (quarterly or semi-annual) required based on the prior period's tax liability (Tax Procedure Code (Act No. 280/2009 Coll.))