Tax concessions
Last reviewed 21 Aug 2023
Direct
N/A
Indirect
Income tax concessions, e.g.
Tax allowances:
Tax allowances that can be claimed by the individual taxpayer to decrease the tax
CZK 30,840 (EUR 1,231) personal allowance
CZK 24,840 (EUR 991) spouse allowance for spouse with income of less than CZK 68,000 (EUR 2,713), who is living together with the taxpayer in a common household and with a dependent child under age of 3 years
CZK 2,520 (EUR 101) / CZK 5,040 (EUR 201) partial / full invalidity allowance
Deductions:
Donations to public institutions and other selected beneficiaries in an EU Member State, Norway, Iceland, Liechtenstein and Ukraine (maximum: 30 % of tax base for both individuals and companies)
Interest on home loan savings and mortgage for individuals – maximum: CZK 150,000 (EUR 5,986)
Contributions to retirement savings products and long-term care insurance - maximum: CZK 48,000 (EUR 1,915)
Tax credits
Family Bonus Plus:
N/A
Children surplus:
N/A
Sole earner deduction pa.:
N/A
Single parent deduction pa.:
N/A
Child deduction:
CZK 15,204 (EUR 607) child allowance for the first child, CZK 22,320 (EUR 891) for the second child and CZK 27,840 (EUR 1,111) for each other child who is living in the EU/EEA
Persons with limited liability to tax are only entitled to claim allowances (except the personal allowance) in case that 90 % of their world income arises from the Czech Republic.
Alimony deduction:
N/A
if in employment / pension income p.a.:
N/A
Allowances and exemptions
Profit allowance:
N/A
Investment allowance:
N/A
Government subsidies
The state subsidies (investment incentives) are available under specified circumstances (minimum investment, industry, region etc.) to manufacturing industry, to technological centers (research and development) and to centers of strategic services (research, SW, shared service centers, high-tech repair centers, data processing centers). For some forms of investment incentives the provision is approved by the Government of the Czech Republic.
Forms:
- Tax incentive: Corporate income tax relief for up to 10 years
- Subsidy in the amount of CZK 300,000 (EUR 11,971) for each newly created job (in regions with the highest rates of unemployment)
- Subsidy in the range from 25 % to 50 % of training and retraining costs for employees (in regions with the highest rates of unemployment) - could be increased by 10-20 p.p. for small and medium-sized enterprises ("SME")
The maximum amount of the subsidy is 20-40 % of total eligible costs, i.e. either assets or two years' gross wages for newly created jobs - could be increased by 10-20 p.p. for SME.
