CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Czech Ruling Party Proposes Progressive Taxes

Czech Ruling Party Proposes Progressive Taxes

by Ulrika Lomas,, Brussels

24 February 2017

Czech Prime Minister Bohuslav Sobotka has announced plans for more progressive corporate and personal income taxes if his party wins this year's parliamentary elections.

The tax plans of the ruling Czech Social Democrat Party (CSSD) were announced by Sobotka on February 21, and it is claimed that they will reduce the tax burden for 90 percent of salaried workers and 99 percent of small businesses.

At present, there is a single personal income tax rate of 15 percent on taxable income, although those earning more than 48 times the average annual salary pay an additional seven percent.

Under the CSSD's plans, four progressive income tax rates would be introduced: 12 percent on the first CZK30,000 (USD1,170) of monthly taxable income; 15 percent on CZK30,000 to CZK40,000; 25 percent on CZK40,000 to CZK50,000; and 32 percent on income exceeding CZK50,000.

It is unclear, however, whether the CSSD would retain the seven percent surtax under its plans.

For companies, the CSSD proposes to reduce the corporate income tax to 15 percent on income up to CZK5m per year, while the existing 19 percent rate would be payable on annual income of between CZK5m and CZK100m. A new higher rate of corporate tax of 24 percent would be introduced on income in excess of CZK100m.

The party claims that just 600 large companies would be liable to pay the proposed higher rate of corporate tax.

The proposals follow the party's recent announcement of its intention to introduce a special tax on banks of up to 0.4 percent of assets if it retains power in October's elections.

TAGS: tax | small business | business | banking | corporation tax | tax rates | Czech Republic | individual income tax

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »