How corporate tax works in Czechia
Czechia taxes resident companies on worldwide income at a flat 21%, raised from 19% in 2024. No regional corporate surcharge exists.
Qualifying investment funds pay 5% and pension funds zero. Dividends and gains on 10%-plus holdings of a year are exempt across the EU, EEA and treaty states meeting tax tests.
Groups above EUR 750 million face the 15% minimum through IIR, UTPR and domestic top-up with 2026 XML filing. The 2023-2025 windfall surcharge on banks and energy is over.
Tax rates at a glance
- Corporate rate
- 21%Flat
- Fund rate
- 5%
- Participation line
- 10% / 1yr
- Inbound dividends
- 15%
- Pillar Two minimum
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesRegional operatorsInvestorsCross-border groups
Watch out for
- Windfall-era advice is expired. The 60% surcharge ended December 2025 — banks and energy price 2026 at 21%.
- Participation needs twelve months plus eligible form. Fresh acquisitions distributing early fail the exemption.
- Third-country holdings need treaty plus 12% tax tests. Non-treaty stakes stay taxable where EU ones exempt.
- Salary-heavy founders face the personal side too. A 21% company rate beside 23% top personal tax plus insurance keeps pay-mix planning live.
Frequently asked questions
Does Czechia have corporate tax?
Yes, 21% flat since 2024 with fund lanes at 5% and zero and participation relief from 10% held a year.
Are subsidiary dividends exempt in Czechia?
Generally yes for 10%-plus year-held stakes across the EU, EEA and qualifying treaty states.
Does Pillar Two apply in Czechia?
Yes. IIR, UTPR and domestic top-up apply to large groups with 2026 electronic filing.