8.1.2. Other Taxes
The following table provides an overview of other taxes that may be imposed on a company doing business in the country.
| Tax Type | Rate(s) | Notes |
|---|---|---|
| Capital Duty | NIL | No capital duty is levied in the Czech Republic. |
| Payroll Tax | NIL | There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees. |
| Social Security Employer Contribution | 33.80% | Contributions made by employers are based on employees' salaries/wages. Employers are required to contribute 24.8% (effective 1 July 2019, previously 25%) of an employee’s gross salary towards pension. Additionally, employers contribute 9% of an employee’s gross salary towards health insurance. In response to COVID-19 pandemic, a temporary waiver is provided for social security contributions for employers with 50 employees or less. The waiver applies for the months of June, July and August 2020, provided the number of employees is not reduced by more than 10% in comparison to March 2020, and the remuneration paid each month is at least 90% of the remuneration paid in March 2020. |
| Social Security Employee Contribution | 11% | Contributions made by employees are based on their salaries/wages and are withheld and remitted by the employer. Employees are required to contribute 6.5% of gross salary towards pension. Additionally, employees contribute 4.5% of gross salary towards health insurance. |
| Property Tax | Varies | Property tax is levied on land at rates ranging from 0.25% to 0.75% on the assessable value of the land and on building at rates ranging from CZK 1.0 per square meter to CZK 10.0 depending on the building type plus CZK 0.75 per square meter for each floor above ground level. The amount is then increased by a coefficient of 1.0 to 4.5 depending on the number of inhabitants in the municipality in which the land or building is located. The higher the population, the higher the coefficient. |
| Transfer Tax | N/A | Real Estate Transfer tax is abolished with retroactive effect in relation to the transfers for which the real estate transfer tax return would have been due on or after 31 March 2020, which covers the transfers registered on or after 1 December 2019. Taxpayers may request a refund for the tax paid in respect of a transfer made on or after 1 December 2019. Previously, real estate transfer tax was levied at the rate of 4% based on the greater of the transaction price or the officially appraised value of the property. The transfer tax was discharged by the buyer of the immovable property, and such an obligation could not be contractually assigned to the seller. Prior to these rules, the obligation to pay tax was on the seller, while the buyer was only required to act as a guarantor in certain cases. |
| Stamp Duty | N/A | No stamp duty is levied in the Czech Republic. |
| Excise Taxes | Various | Excise tax is imposed on the production or import of certain goods, including fuels, lubricants, alcoholic beverages, and tobacco products. |
| Customs Duty | 0% to 17% | Customs duties are imposed on goods imported from outside the European Union. In response to the COVID-19 pandemic, an exemption from customs duty is provided on import of goods necessary to combat the COVID-19 pandemic from 30 January 2020 until 31 December 2021 (extended from 30 April 2021). The exemption applies to state entities, charitable and philanthropic organizations, and rescue services. |