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5.4. Tax Base for Non-Resident Entities

Non-resident companies with a branch or a permanent establishment (PE) are liable to tax in the Czech Republic in much the same way as a resident company, albeit only on Czech-source income attributed to the branch or permanent establishment.

Non-residents without a taxable presence are subject to tax (generally by way of final withholding) on specified Czech-source income only.

The Czech Financial Administration has clarified that corporate taxpayers providing accommodation or transport services through online platforms (including foreign platforms) are required to report and pay tax on such income.

Effective from 1 January 2018, new procedures have been established for obtaining a binding tax ruling with respect to the determination of the tax base of a permanent establishment located in the Czech Republic.