The Czech Republic – is a country, actually located in the Central Europe. The country is bordered by Poland in the north, by Germany in the north-west and in the west, by Austria in the south and by Slovakia in the east.
Czech companies are actively involved in trade intermediary schemes, and the jurisdiction is increasingly used in order to optimize taxation.
We draw your attention to the fact that sometimes you can find such a notion as "offshore" Czech Republic. At the same time, the country has never been included in the black lists of any country in the world. Taking into account this fact, it will be the obvious advantage of the above-mentioned jurisdiction for the foreign banks that prefers to work with prestigious jurisdictions rather than offshore.
The Law on Commercial Corporations regulates the establishment and operation of firms in the Czech Republic.
The following types of companies are the most popular in Czechia:
Limited liability company (s.r.o.) – is the most attractive form for foreigners interested in legal presence within the Czech Republic. This type is popular due to its speed of registration terms, liberal reporting system and simplicity of management.
The end of the fiscal year in the Czech Republic usually occurs on December 31, but the company can choose another reporting date (the interval should not exceed 12 calendar months).
Entrepreneurs are required to submit income tax returns within 3 months after the end of the tax period, which is usually a calendar year, i.e. until March 31.
If the company has official employees, then it is necessary to submit monthly reports to the social insurance, health insurance, and income tax reports of individuals.
VAT report is also submitted monthly.
For large companies and joint-stock companies, an annual audit is also required.
A company is considered large if two of three conditions are met:
A positive feature of Czech tax legislation is its predictability. All changes in legislative regulation are announced a year or two in advance.
The corporate income tax is 21%.
Capital gains are subject to general corporate tax.
VAT - 21% (may apply reduced rates of 15% and 10%).
A legal entity must be registered as a VAT payer in the Czech Republic as soon as its annual turnover exceeds CZK 1 million during the last 12 consecutive calendar months, with the exception of those legal entities that carry out transactions that are exempt from taxation.
Tax on dividends, royalties, interests - 15%.
If an agreement on avoidance of double taxation is signed between the Czech Republic and the country of the recipient of dividends, the norms of this agreement are used to pay tax on dividends, since it has supreme force over national legislation.
Personal income tax - 15%.
Tax payment deadlines:
Corporate tax should be pay until March 31 of the year following the reporting year.
VAT is paid by the 25th day of the month following the reporting month.
It is quite difficult to register a company in the Czech Republic on your own because you need to know all the legal and tax requirements for local businesses, so our lawyers will provide you with professional support for registering your business.
The Czech Republic has signed over 80 bilateral tax conventions, including with Ukraine.
If you want to buy an offshore company in the Czech Republic, please contact our lawyers for advice:
+38 (098) 737-88-88
We will help you register a company in the Czech Republic, for example, in Prague, or any other jurisdiction of your choice. Opening and registering a business in the Czech Republic together with Campio Group is a profitable and cost-effective solution.
The cost of registering a company in the Czech Republic is determined specifically for each business and its features, so get the final price in a commercial offer after all the details have been clarified by our lawyer.