Last reviewed - 27 July 2023. Czech corporations are required to withhold tax on payments of dividends, interest, and royalties as follows (please note that this overview is indicative only and cannot be relied upon without checking the particular DTT, as each DTT has its own definition of dividends, interest, and royalties): Recipient. WHT (%) The Czech Financial Administration Dec. 21 issued FAQs on personal income taxes for tax years 2023 and 2024. Topics covered include: 1) the employment income declaration deadlines of March 1, 2024, for paper returns, March 20, 2024, for electronic returns, and April, 1, 2024, for paper and electronic returns of tax withheld at a special rate; 2 Rates – The standard VAT rate in Czech Republic is 20% and the reduced rate is 10%. Taxable transactions – VAT is levied on the sale of goods and the provision of services. VAT is levied on imported goods at the same rates as domestic goods. Exported goods to non-EU countries are an exempt supply. Also in Austria a tax shift took place increasing the net income on the lower salaries. Taxes on higher salaries have not changed, the usual rate is 50% or more, as opposed to the Czech Republic where the tax rate for higher salaries is approximately 24% including the solidarity tax increase. How to calculate Czech personal income tax. 15% income tax rate for those earning below approximately CZK 1 935 552. 23% income tax rate for those earning above approximately CZK 1 935 552. There are also non-taxable items (tax deductibles) to reduce the tax base if certain legal conditions are met. Czech Republic – Wide-Ranging Personal Income Tax Changes The president of the Czech Republic, following approval by the Czech Senate1 of the so-called government consolidation package, signed new legislation into law which affects personal income tax and social security. Most of the provisions are expected to come into effect on 1 January 2024. m6aH1. Under the IIR, a Czech Republic ultimate parent entity (UPE) will be required to pay a Top-up tax equal to the difference between the effective tax rate (ETR) of its foreign low-taxed constituent entities (LTCEs) and the minimum prescribed rate of 15%. THE CZECH INCOME TAX' RICHARD E. HALPERIN** 1. INTRODUCTION On April 28, 1992, the Federal Assembly of the Czech and Slovak Federal Republic enacted the Act on Income Taxes ("Old Federal Act").' That statute was to become generally effective beginning January 1, 1993. Effective January 1, 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 The Czech Ministry of Finance came up with a new solution and from 01.01.2021, the Czech trade license holders can use the method of The Czech flat tax amount, which is 6 208 CZK monthly for the year of 2023.Monthly Czech flat tax amount covers the public health insurance, social tax and income tax, and brings NO tax paperwork. The Czech trade license holders can choose various types of tax options. Income tax is 15% of net income and there is a 30 840 CZK tax discount. The Income-tax will be 23% for the amount over 1 935 552CZK. Method 60/40 is the most common. The collection of payment receipts or invoices from expenses is not necessary.

czech republic income tax rate