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Income tax return y. 2009

Corporate income tax:

  • Income tax rate = 20%
  • Income tax rate of pension and investment funds: 5%
  • Dividend tax, withholding tax: 15%

Personal income tax:

  • single rate 15%
  • annual personal tax abatement: 24,840 CZK
  • annual abatement for one child: 10,680 CZK
  • annual maintained spose abatement: 24,840 CZK

Test of residence – liability to pay tax after living in the Czech Republic for 183 or more days in a calendar year .

15.10.2009 Change in the tax settlement date:
With effect from 1 November 2009 there was changed determination of tax settlement date for payment outgoing from bank account in Czech Republic. Tax will be considered covered on behalf of the Financial office in the day of payment receipt on FO bank account. From January 2010, will be the same method of determining the date of payment also applied to health insurance and social insurance.

3.4.2009: New extraordinary depreciation rules
Fixed tangible assets within the first depreciation group, which includes, for example, IT equipment and certain machinery, a taxpayer can deduct the full amount of the purchasing price as tax depreciation in period 12 months. This rule shortens the depreciation period to one-third in comparison with the standard depreciation period of three years.
The acquisition price of fixed tangible assets within the second depreciation group (including, for example, personal cars, office equipment and certain machinery) can be recognized as a deductible expense through tax depreciation over 24 months – instead of the standard depreciation period of five years. In this case, 60 percent of the acquisition price is deducted over the first 12 months and the remaining 40 percent of the acquisition price is claimed over the following 12 months, both on a prorated basis.