🇨🇿 Tax Overview — Czech Republic

Limited Liability Company (s.r.o.)

The Czech Republic levies a 21% corporate income tax on worldwide profits for tax-resident companies. Dividends paid to individual shareholders are subject to 15% withholding tax. Dividends to EU/EEA parent companies holding at least 10% for 12 months are exempt under the EU Parent-Subsidiary Directive. VAT is 21% standard, with a reduced rate of 12% on food, accommodation, cultural events, and certain other supplies. Employers bear social security contributions of 24.8% (pension, sickness, and employment policy insurance) and health insurance contributions of 9% of gross salary. Employees contribute 6.5% social security and 4.5% health insurance. Losses can be carried forward for five years. R&D tax incentives allow deduction of 100% of qualifying R&D expenses on top of normal deduction.