|
Czech Republic - TAXES ACCOUNTING |
|
Corporate tax
Tax rate for resident companies |
The standard rate of corporate tax is 26% on January, 1st of 2005 (24% in 2006). Investment funds, mutual funds and pension funds are subjected to tax at a rate of 15%.
|
| |
|
Taxe rate on long-term capital gains |
Capital gains are taxed at the normal corporate income tax rate: 26%.
|
| |
|
System governing groups of companies and dividends paid by subsidiaries to their parent companies |
Dividends paid to residents and non-residents are subject to a final witholding tax at a rate of 15%.
|
| |
|
Tax rate on branches |
Branch profits tax rate is 26% in the Czech Republic.
|
Income tax
Fiscal year |
The fiscal year begins on January 1st and ends on December 31st of the same year.
|
| |
|
Income tax rate |
Tax schedule 2003:
| Income | Tax rate (%) | | 0–109,200 | 15 | | 109,201–218,400 | 20 | | 218,401–331,200 | 25 | | 331,201 and over | 32 |
|
| |
|
Tax deductions or
other allowances |
In Czech Republic, taxpayers benefit from various deductions:
- A basic dejection of 32 040 CZK
- A deduction of 18 000 CZK for every child
- A deduction of 18 240 CZK for couples with a salary under or equal to 32 040 CZK.
- A deduction for ill or disabled persons.
- Deduction in case of donation to charitable organizations.
- Nonresidents only have the right to a fixed deduction of 32 040 CZK.
|
VAT rates
Standard rates |
Standard VAT rate is 19% since May 1, 2004
|
| |
|
Reduced rates |
Reduced rate is 5% on catering & hotels, books, printed materials, food, medicines and passenger transport. Exported goods are exempt from tax.
|
Other important taxes
|
Name of tax |
Rate |
|
Succession and donation
|
1% to 5%
|
|
Rights of transfer in return for remuneration on transfer of buildings
|
5%
|
|
|
Accounting
Introduction
Czech accounting rules are determined by the Ministry of Finance.
General accounting principles
The balance sheet is presented into accounts with liabilities composed of constant capital and debts, because there is a distinction between long and short-term debts.
The profit and loss account gives priority to the repository of the global production and lets the choice of the cost - classification by nature.
|
Obligations and publications
Companies have to publish a balance sheet, a profit and loss account and annexes.
Certification and auditing
The external control of accounts must be given to a body of auditors chosen by the company.
Professionals and representative organizations
Accountants associations have some difficulties to get organized, because of the importance of the State in the accounting system.
|
Useful links |
|
|
For futher informations, please check the tax report edited by CzechInvest.
|
Export Entreprises SA ©, All rights reserved
Last modified in
January 2003
|
|
|
