Tax concessions
Last reviewed 29 Mar 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 1,279) personal allowance
CZK 24,840 (EUR 1,030) spouse allowance for spouse with income of less than CZK 68,000 (EUR 2,820)
CZK 4,020 (EUR 167) allowance for students (up to age of 26 years)
CZK 2,520 (EUR 104) / CZK 5,040 (EUR 209) 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 6,220)
Contributions to state subsidized supplementary pension insurance for individuals – maximum: CZK 24,000 (EUR 995)
Contributions to a private life insurance for individuals – maximum: CZK 24,000 (EUR 955)
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 630) child allowance for the first child, CZK 22,320 (EUR 926) for the second child and CZK 27,840 (EUR 1,154) for each other child who is living in the EU/EEA
Allowance for the placement of a child to nursery at the amount of the real costs. Maximum allowance amounts to CZK 17,300 (EUR 717). 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). The provision of investment incentives is newly 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 12,440) 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)
The maximum amount of the subsidy is 25-45 % of total eligible costs, i.e. either assets or two years' gross wages for newly created jobs.
