Czech Republic
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 7 | 75.49 |
| Corporate Taxes | 8 | 71.12 |
| Individual Taxes | 4 | 93.19 |
| Consumption Taxes | 35 | 52.59 |
| Property Taxes | 6 | 76.94 |
| Crossborder Taxes | 12 | 82.32 |
The Czech Republic ranks 7th overall on the 2021 International Tax Competitiveness Index, the same as in 2020.
Strengths
- The corporate rate of 19 percent is below the OECD average (22.9 percent), with above-average cost recovery provisions.
- Taxes on labor are minimally distortive.
- The Czech Republic has a territorial tax system, exempting both foreign dividend and capital gains income from other European countries, combined with a broad tax treaty network.
Weaknesses
- Consumption taxes have a high compliance burden and apply to a relatively narrow base.
- Net operating losses can only be carried forward for five years (they can, however, also be carried back for two years).
- The Czech Republic's thin capitalization rules are among the stricter ones in the OECD.
Learn more about the tax system in Czech Republic