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Czech Republic Recovery Package Includes Increased Corporate Income Tax Rate, Merged Reduced VAT Rate, and Other Changes

16 May 2023

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Proposed Changes

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Czech Republic

The Czech Ministry of Finance has issued a release on the government's recovery package, which contains several tax measures. Some of the main measures include: An increase in the corporate income tax rate from 19% to 21%; The reintroduction of employee health (sickness) insurance contributions at a reduced rate of 0.6%; An increase in real estate tax rates up to double for the benefit of the state budget through the introduction of a so-called state coefficient to the tax rate (currently, 100% of collected tax goes to municipalities); The introduction of a cap on the deductible expenses for company cars...