Taxes in the Czech Republic
Corporate income tax is levied on income from sources in the Czech Republic and from sources abroad. On the other hand, payers who do not stay long-term in the territory of the Czech Republic are only required to pay tax on income received in its territory. The subject of the tax is income from all types of activities and disposal of all property, unless otherwise expressly stated in the law. The tax rate on the income of legal entities has been 19% since 2010. the tax base reduced by the articles specified in the law. In all cases, the annual balance sheet does not include expenses: forfeit, fines, fixed capital of the company, loss greater than the money received from insurance, presentation costs.
Value added tax is the main component of the tax system. The value added tax rate varies depending on the type of activity – trade or provision of services. The main tariff is 20% from January 2010, the reduced tariff is 10%.
The reduced tariff is applied when calculating VAT on income from services, trade in products, and medicine. VAT is paid monthly for annual turnover over 10,000,000 kroons and quarterly for smaller turnover.
The obligation to register as a VAT payer arises for a business entity if its turnover for the next 12 consecutive months exceeded the amount of 1 million kroons.