Europe

Czech Republic

Corporate rate
21%
Top personal rate
23%
VAT / GST rate
21%
One-sentence summary Czech Republic's corporate tax position: 21. Personal income tax: 23. VAT/consumption tax: 21.

Corporate Tax Rate

Czech Republic's headline corporate income tax (CIT) rate is 21.

Personal Tax Rate

The headline personal income tax (PIT) rate is 23.

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 21. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

An individual is a Czech tax resident if they have a permanent home in the Czech Republic or "ordinarily reside" there - which includes staying at least 183 days in the relevant calendar year (in any 12-month period). A company is resident if its legal seat or place of management is in the Czech Republic. Residents are taxed on worldwide income; non-residents only on Czech-source income. Certain individuals - all employees of a Czech company (including branches), expatriate assignees whose costs are borne by a Czech entity or PE, and statutory representatives or board members of Czech companies - are subject to Czech tax on Czech-source income regardless of days present.

CFC Rules

The Czech Republic fully implemented EU ATAD 1's CFC rules effective 2019. A foreign or Czech company is a CFC where a Czech entity participates, alone or with related parties, in more than 50% of its capital, voting rights, or profit entitlement. Where triggered, specified passive income items of the CFC are included in the Czech parent's tax base.

Thin Capitalization / Interest Limitation

The Czech Republic applies an ATAD-based EBITDA interest limitation rule: exceeding borrowing costs (interest and interest-equivalent items, including leasing interest components and interest capitalized into asset values) are deductible up to 30% of tax-EBITDA. Disallowed costs carry forward indefinitely (though the carryforward does not pass to a legal successor on reorganization) and can be used in later years when the threshold is not fully utilized.

Treaty Network

The Czech Republic has 99 double taxation treaties on income and/or capital currently in force, per the official Ministry of Finance list (gov.cz). Belarus suspended Articles 10, 11, and 13 (dividends, interest, capital gains) of its treaty with the Czech Republic from June 1, 2024 through December 31, 2026, with the Czech Republic applying reciprocal measures for the same period.

Source: PwC Worldwide Tax Summaries - Czech Republic (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 27 July 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.