Czech Republic

Corporate taxation

The corporate tax rate in the Czech Republic is 19%. Corporate income tax applies to the profits generated by all companies, including branches of foreign companies. Czech resident companies are required to pay income tax derived from worldwide sources. A 5% corporate income tax rate applies to certain investment funds, and a 0% rate applies to pension funds.

Transfer pricing

The arm’s length principle is contained in the Czech Income Tax Act 586/1992 Coll., Section 23 para 7. The OECD TP Guidelines is not implemented into the Czech tax legislation directly, but in the Guideline D-22 is the recommendation to use TPG.

Links

Transfer Pricing Case Law

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