Czech Republic Corporate Income Tax
Detailed corporate income tax rates and rules for Czech Republic in 2026.
The Czech Republic levies corporate income tax at a flat rate of 21% (increased from 19% in 2024). Investment funds are taxed at 5%. The Czech corporate tax regime provides for a participation exemption on dividends and capital gains from qualifying subsidiaries (minimum 10% holding for 12 months).
Standard Rate
21%
Additional Notes
Tax losses can be carried forward for 5 years (no carryback). The Czech Republic has implemented interest deduction limitation rules and CFC rules. Transfer pricing rules follow OECD guidelines. R&D tax deductions allow companies to deduct 100% of qualifying R&D costs as an additional deduction. Investment incentives are available for manufacturing, technology centers, and business support services in certain regions.
How Czech Republic Corporate Tax compares
Czech Republic’s corporate tax rate of 21% is the 123rd highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Europe’s regional average of 19%.
