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 TPG has not been implemented into the Czech tax legislation directly, but according to the local TP Instruction it is recommended to use the guidance provided in the OECD TPG.

Links

• • • • Transfer Pricing Country Profile
      • Transfer Pricing Dispute Resolution Profile
      • Tax Administration
      • Local Transfer Pricing Guidelines

Transfer Pricing Case Law

Case Name	Description	Date	Countries	Keywords