The Czech tax system primarily differentiates between direct and indirect taxes. Both of these groups consist of:
1) Direct taxes
2) Indirect taxes
The most important taxes from the above mentioned list are in the term of tax collection value added tax, excise duties, personal and corporate income tax. Nevertheless, social and health security contributions comprise the highest state revenue.
The Czech Republic introduces an extraordinary windfall tax as of 1 January 2023. The windfall tax will be levied on excess profits for a period of years 2023 - 2025 and will apply to companies in the sectors of energy production and trade, banking, oil industry, mining and fossil fuel processing. The windfall tax rate is 60 % of the excess profits that will result from the differences between the annual tax bases in the period 2023 - 2025 and the average of the tax bases increased by 20 % in the last four years (i.e. 2018 - 2021).
It is a common practice to have a tax advisor in the Czech Republic who takes care for all tax issues on the behalf of a client such as:
Yourtaxes.cz - a registered tax advisor in the Czech Republic - is more than happy to assist you with all these issues. Our team has only experienced experts who have years of practice in the tax advisory in the Czech Republic. All of them are members of the Czech Chamber of Tax Advisors. We are able to provide you with high quality services for very competitive prices! Just contact us and we can send you a tailor-made offer.
Yourtaxes.cz - Your tax advisor in the Czech Republic
From January 1, 2024, a number of significant changes will take place in the Czech tax system - the corporate tax rate will increase, VAT rates will change and, last but not least, the tax burden on natural persons will also increase.
In addition to changes in the area of corporate income tax, the Czech Ministry of Finance is preparing to adjust VAT rates. VAT rates should change from January 1, 2024.
The Czech Republic is planning extensive changes to its tax system, including changes to corporate income tax rates, effective from the beginning of 2024, which should help reduce the state budget deficit.