Taxation in the Czech Republic

Taxation
An aspect of fiscal policy
Policies Government revenue Tax revenue Non-tax revenue Tax law Tax bracket Tax threshold Exemption Credit Deduction Tax shift Tax cut Tax holiday Tax advantage Tax incentive Tax reform Tax harmonization Tax competition Double taxation Representation Unions Medical savings account Tax, tariff and trade
Economics Price effect Excess burden Tax incidence Laffer curve Optimal tax Theory Optimal capital income taxation
Collection Revenue service Revenue stamp Tax assessment Taxable income Tax lien Tax refund Tax shield Tax residence Tax preparation Tax investigation Tax shelter Private tax collection Tax farming
Noncompliance Tax avoidance Tax evasion Tax resistance Tax haven Smuggling Black market Transfer mispricing Unreported employment Tax shelter
Distribution Tax rate Progressive Regressive Proportional
Types Direct Indirect Per unit Ad valorem In rem Capital gains Carbon Consumption Dividend Ecotax Excise Fuel Georgist Gift Gross receipts Income Inheritance (estate) Land value Payroll Pigovian Property Sales Sin Single Stamp Steering Turnover Value-added (VAT) Corporate profit Excess profits Windfall profits Negative (income) Flat Wealth
International Financial transaction tax Currency transaction tax Tobin tax Spahn tax Tax equalization Tax treaty Permanent establishment Transfer pricing European Union FTT
Trade Custom Duty Tariff Import Export Tariff war Free trade Free trade zone Trade agreement
Religious Church tax Eight per thousand Teind Tithe Fiscus Judaicus Leibzoll Temple tax Tolerance tax Jizya Kharaj Khums Nisab Zakat
By country List of countries by tax rates Tax revenues as %GDP Albania Algeria Argentina Australia Azerbaijan Bangladesh Bhutan Bulgaria Canada China Colombia France Germany Greece Iceland India Indonesia Iran Ireland Israel Italy Japan Kazakhstan Lithuania Malta Namibia Netherlands New Zealand Norway Pakistan Palestinian territories Peru Philippines Poland Russia Singapore South Africa Sweden Switzerland Tanzania United Kingdom United States Uruguay

Taxes in the Czech Republic are levied by both the state and local governments. Tax revenue stood at 36.3% of GDP. The most important sources of revenue include the income tax, social security contributions, value-added tax and the corporate tax.

Income taxes in Czech Republic are levied at a flat rate of 15% on gross income with an additional 7% solidarity tax surchage for individuals making over 48 times the average wage (CZK 1,277,328 annually in 2015).^[1] The corporate tax rate in 2015 was 19%.^[1] All employment income earned in the Czech Republic is subject to various social security insurance fund contributions. The total tax burden can largely be described as flat to regressive as no progressive taxes are levied.

VAT rates also apply.^[2] The normal rate is 21% in 2015.^[3] The reduced rate was also increased in 2014 from 14% to 15%.^[4]

Social security Contributions 2015^[1]

History

During the Austrian Empire in the 18th and 19th centuries, the Bohemian Kingdom (what is now the Czech Republic) carried a significant part of the tax burden, as one of the most industrialised parts of the empire, paying 32% of all taxes in the Austrian territories in 1750.^[5]

Since the break with the Soviet Union, multiple reforms have been done to bring the economy from a government run economy to a free market economy. This also brought a long range of tax reforms, including the introduction of a flat tax, and shift from direct taxes over to indirect taxes and large amounts of tax simplifications. In 1990, the Czech Republic introduced a long range of environmental charges, including air emission charges, CFC product charges, water extraction and pollution charges, sewage charges, charges for waste disposal, land conversion charges, and an airport noise tax.^[6]

References

1. 1 2 3 "Tax card year 2015" (PDF). KPMG. Retrieved 26 March 2016. 
2. ↑ "VATGlobal". 
3. ↑ "Deloitte International Tax Source Year 2015". n.d. Retrieved 26 March 2016. 
4. ↑ "VAT rise in Czech". 
5. ↑ The Rise of Fiscal States: A Global History, 1500-1914. 
6. ↑ "Economic Instruments: data about new charges". Retrieved 18 July 2014.