Czech Republic: Domestic Corporate Taxation
Scope of Income Tax
Corporate Income Tax is payable by any legal entity (not individuals) where the registered place of business is in the Czech Republic. This liability for income tax applies to income derived from business activities within the Czech Republic and worldwide. Where an entity is conducting business in the Czech Republic but does not have a permanent, registered address there, income tax is limited to income within the Czech Republic. There are certain double taxation treaties in force with other countries and the terms of these treaties may affect the amount of tax paid.
Corporate income tax is generally payable on income derived from business activities and the sale of property. Certain organisations including charitable foundations and public health associations are exempt from tax provided they meet relevant criteria.