Czech Republic: Domestic Corporate Taxation
Calculation of Taxable Base
Tax-deductible expenses are allowed, provided the expenses have been incurred to ensure the generation and maintenance of taxable income. Donations to charities and costs associated with research and development are tax deductible. Capital gains are taxed at the standard corporate income tax rate – there is no separate capital gains tax.
Tax losses may be carried forward for five years. Depreciation for predefined assets is allowable by straight-line or accelerated methods. The period of depreciation depends on the asset. Depreciation of certain intangible assets is also allowed, provided the original cost of acquisition exceeded CZK60,000.