Introduction To The Taxation System In The Czech Republic

The Czech Republic introduced an entirely reformed tax regime on 1 January 1993. Broadly based on European Union norms, the new system includes corporate tax, personal income tax and a standard VAT regime.

Investors should be aware that this new legislation is still subject to a process of almost continuous modification and amendment. In addition, it is important to be aware of the increasingly large divergence of the rules in force in the Czech and Slovak Republics.

The tax year is in all cases the calendar year.

The content of this article is intended to provide a general guide to the subject matter. It is therefore not a substitute for specialist advice.

For further information contact Paul Antrobus or Richard Fletcher, Arthur Andersen Prague, tel +42 2 2440 1300 or enter a text search 'Arthur Andersen' and 'Business Monitor'.