Taxation in the Czech Republic

Taxation
An aspect of fiscal policy
Policies Government revenue Tax revenue Non-tax revenue Tax law Tax bracket Tax threshold Exemption Credit Deduction Tax shift Tax cut Tax holiday Tax advantage Tax incentive Tax reform Tax harmonization Tax competition Double taxation Representation Unions Medical savings account Tax, tariff and trade
Economics Price effect Excess burden Tax incidence Laffer curve Optimal tax Theory Optimal capital income taxation
Collection Revenue service Revenue stamp Tax assessment Taxable income Tax lien Tax refund Tax shield Tax residence Tax preparation Tax investigation Tax shelter Private tax collection Tax farming
Noncompliance Tax avoidance Tax evasion Tax resistance Tax haven Smuggling Black market Transfer mispricing Unreported employment Tax shelter
Distribution Tax rate Progressive Regressive Proportional
Types Direct Indirect Per unit Ad valorem In rem Capital gains Carbon Consumption Dividend Ecotax Excise Georgist Gift Gross receipts Income Inheritance (estate) Land value Payroll Pigovian Property Sales Sin Single Stamp Steering Turnover Value-added (VAT) Corporate profit Excess profits Windfall profits Negative (income) Flat
International Financial transaction tax Currency transaction tax Tobin tax Spahn tax Tax equalization Tax treaty European Union FTT
Trade Custom Duty Tariff Import Export Tariff war Free trade Free trade zone Trade agreement
Religious Church tax Eight per thousand Teind Tithe Fiscus Judaicus Leibzoll Temple tax Tolerance tax Jizya Kharaj Khums Nisab Zakat
By country List of countries by tax rates Tax revenues as %GDP Albania Algeria Argentina Australia Azerbaijan Bangladesh Bhutan Bulgaria Canada China Colombia France Germany Greece Iceland India Indonesia Iran Ireland Israel Italy Japan Kazakhstan Lithuania Namibia Netherlands New Zealand Norway Pakistan Palestinian territories Peru Philippines Poland Russia Singapore South Africa Sweden Switzerland Tanzania United Kingdom United States Uruguay

Taxes in the Czech Republic are levied by both the state and local governments. Tax revenue stood at 36.3% of GDP. The most important sources of revenue include the income tax, social security contributions, value-added tax and the corporate tax.

Income taxes in Czech Republic are levied at a flat rate of 15% on gross income. Corporate tax rate in 2014 was 19%.^[1] All employment income earned in the Czech Republic is subject to various social security insurance fund contributions. The total tax burden can largely be descriebed af flat to regressive as no progressive taxed re levied.

VAT rates also apply. The normal rate is 21% in 2014, an increase by 1%. The reduced rate was also increased by the same amount from 14% to 15%.^[2]

Social security Contributions 2014^[3]

Insurance Policy	Employee	Employer
Pension Insurance fund	6.5/8.5%	21.5%
Sickness Insurance fund	0.0%	2.3%
Employment Insurance	0.0%	1.2%
Health Insurance	4.0%	9.0%
Total in %	11.0/13.0%	34.0%

History

During the Austrian Empire in the 1700 and 1800, Czech carried a significant part of the tax burden, as some of the most industrialized part of the empire. Bohemian Kingdom (what is now Czech republic) paid 32% of all taxes in the Austrian territories in the 1750.^[4]

Since the break with the Soviet Union, multiple reforms have been done to bring the economy from a government run economy to a free market economy. This also brought a long range of tax reforms, including the introduction of a flat tax, and shift from direct taxes over to indirect taxes and large amounts of tax simplifications. In 1990, the Czech Republic introduced a long range of environmental charges, including air emission charges, CFC product charges, water extraction and pollution charges, sewage charges, charges for waste disposal, land conversion charges, and an airport noise tax.^[5]

References

↑ "Europe.eu". Income tax and Corporate tax 2014. Check date values in: |date= (help)
↑ "VAT rise in Czech".
↑ "KPMG" (PDF). Tax card year 2014. Check date values in: |date= (help)
↑ "The Rise of Fiscal States: A Global History, 1500-1914".
↑ "Economic Instruments". data about new charges. Check date values in: |date= (help)

Taxation in Europe

Sovereign states	Albania Andorra Austria Azerbaijan Belarus Belgium Bosnia and Herzegovina Bulgaria Croatia Czech Republic Denmark Estonia Finland France Georgia Germany Greece Hungary Iceland Ireland Italy Kazakhstan Latvia Liechtenstein Lithuania Luxembourg Macedonia Malta Moldova Monaco Montenegro Netherlands Norway Poland Portugal Romania Russia San Marino Serbia Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine United Kingdom

States with limited recognition	Abkhazia Kosovo Transnistria

Dependencies and other territories	Åland Faroe Islands Gibraltar Guernsey Jersey Isle of Man Svalbard

Other entities	European Union