Europe · Tax guide
Czechia
Czechia taxes company profits at 21%, charges VAT at 21% with a single reduced rate of 12%, withholds 15% on many payments abroad, and applies the global minimum tax. Taxes are administered by the Financial Administration.
At a glance
- Corporate income tax
- 21%
- VAT
- 21%
- VAT registration
- CZK 2,000,000
- Employer contributions
- 33.8%
- Withholding on payments abroad
- 15%
- Global minimum tax
- 15%
Flat rate
Reduced rate 12%
Annual turnover
Social security and health insurance
Dividends, interest and royalties
Groups with revenue of €750 million or more
Corporate income tax
Companies pay 21%. Advances are paid quarterly or half-yearly and the return is due by the beginning of April (later with an adviser).
VAT
VAT is charged at 21%, with a reduced rate of 12%. Czech businesses must register once annual turnover exceeds CZK 2,000,000. Returns and control statements are filed electronically every month or quarter.
Employers
Employers withhold income tax and pay social security and health insurance contributions of 33.8% of gross salary.
Withholding tax
Dividends, interest and royalties paid to non-residents carry 15%, reduced by treaties and EU directives; a higher rate applies to countries without a tax information agreement.
Transfer pricing and the global minimum tax
Related-party transactions must be at arm's length, with transfer pricing documentation kept for larger taxpayers. Groups with revenue of €750 million or more are subject to the global minimum tax at 15% in Czechia.
Key dates
- By the 25th of each monthVAT return and control statement
- 1 AprilCorporate tax return (later with an adviser)
Figures and sources
8 figures- Corporate income tax rate21%Checked against the official source
- VAT standard rate21%Checked against the official source
- VAT reduced rate12%Checked against the official source
- Withholding on dividends, interest and royalties to non-residents (35% for non-treaty countries)15%Checked against the official source
- Annual turnover above which Czech businesses must register for VATCZK 2,000,000Checked against the official source
- Employer social security and health insurance contributions33.8%Under professional review
- Global minimum tax rate15%Checked against the official source
- Group revenue for the global minimum tax€750 millionChecked against the official source
Indicative only. This assessment is a high-level overview of tax obligations in Czechia based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a Czech tax adviser (daňový poradce) before making compliance decisions.