Tax & Accounting
With hundreds of clients that rely on them for their expert accounting, tax, wage, and other admin services, EIBD has been growing from strength to strength since their establishment in 2004. Their services provide valuable assistance to expats in Prague.
They are committed to providing invaluable, cost-friendly services to clients, making them a wise choice for any expat moving to Prague.
EIBD is here to help you with:
- Accounting and tax services
- Establishing a business in Prague
Tax & Accounting for Expats in Prague
The Czech Republic has a tax system that is based on self-assessment, meaning that every taxpayer, whether they’re an individual or a business, has to calculate their own tax due and pay it. The tax year in Czech Republic is different from the calendar year. That said, companies are free to choose their tax year.
Key Tax and Accounting tips you should know as an expat in Prague
- Tax returns in the Prague needed to be submitted by the 1st of April, or the 1st of July if it is prepared and submitted by a tax advisor or solicitor. The year-end for taxes is 31st
- Tax rates are 15% on personal income and an additional 7% solidarity tax increase imposed on annual gross income more than 1,569,552 Czech Koruna (CZK).
- When you are calculating your taxable income, you need to note all expenses incurred in obtaining, ensuring and maintaining income, as they are usually fully tax deductible, unless the law states otherwise.
Tax and Accounting for expats establishing a business in Prague
- Resident companies in Prague are taxed on their worldwide income, while non-resident companies are taxed on income that come from the Czech Republic.
- Your company will be a resident if its seat or place of management is within the country.
- Corporate tax is usually levied at 19%, basic investment funds at 5%, and pension funds are not subject to tax.
- Dividends that are paid to residents and non-resident are usually subject to 15% withholding tax, although there are exceptions, such as dividends paid by subsidiary to a holding company
- Prague does not have foreign controlled company legislation.
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