Page 19 - CEE Tax Guide 2025

time test effective from July 1, 2025). The VAT-
VAT options Applicable / limits
in Czech Republic exempt services without deduction include financial
and insurance services, renting of real estate, mail
Distance selling EU threshold – EUR 10,000/year
OSS system applicable. services, radio and TV services, education, medical
and social care services.
Call-off stock
The VAT exemption with deduction applies
VAT group registration – only for Czech legal entities.
on supply of books and other similar goods if certain
Cash accounting – yearly No conditions are met.
amount in EUR (approx.)
VAT payers are generally obliged to submit
Import VAT deferment
three types VAT reports - VAT return, EC Sales
Local reverse charge Examples: waste, some List and Control Statement (detailed records for
electronic devices, used real
estate, construction work. selected transactions) on a monthly or quarterly
basis, depending on the turnover and status
Option for taxation
of the VAT payer.
letting of real estate – only to Czech VAT Other indirect taxes include excise duties
payers for the performance (on mineral oils, spirits, beer, wine, raw tobacco,
of economic activities.
tabacco products and other non-tabacco nicotine
supply of used real estate – except the first supply products) and an enviromental (energy) tax
within 23 calendar months after
a building approval or substantial (on natural gas, electricity, and solid fuels).
construction change (this
is a new time test effective from Personal income tax /
July 1, 2025).
Social security system
VAT registration Approx. EUR 84,875/
threshold last 12 months (from
January 1, 2025). Personal income tax is applied at progressive rates
of 15% and 23% on all types of income (employment,
self-employment, rental incomes, capital gains,
construction works on residential housing,
admission to educational, cultural, artistic, sporting interest) with exemptions of certain types to
or similar events etc. dividends and interest or director fees paid to non-
The VAT exemption without deduction applies residents, which are taxed at a flat rate of only 15%.
on supplies of developed land, undeveloped land not Czech social security contributions of 24.8% are
intended to be developed, buildings/apartments/ assessed on a capped annual assessment base
non-residential premises except the first supply of CZK 2,234,736.
within 23 calendar months after an approval Czech health insurance contributions of 9% are
or substantial construction change (this is a new assessed on an uncapped assessment base.

Wage related taxes in Czech Republic Minimum wage Average wage in private sector
Exchange rate CZK/EUR 25.17 in EUR in CZK in EUR in CZK
826 20,800 1,849 46,557

Total wage cost 1,105 134.00% 2,474 134.00%
Employer social security contribution 205 24.80% 459 24.80%
Employer health insurance contribution 74 9.00% 166 9.00%
Gross salary 826 100.00% 1,849 100.00%
Employee social security contribution 59 7.10% 131 7.10%
Employee health insurance contributions 37 4.50% 83 4.50%
Czech personal income tax 124 15.00% 277 15.00%
Net salary 606 73.00% 1,358 73.00%

Pavel Klein
Partner, Head of Tax Services
Phone: (+420) 721 461 394
E-mail: pavel.klein@mazars.cz

Central and Eastern European tax guide 2025 Forvis Mazars 19