|International Tax Rules||6||89.03|
The Czech Republic ranks 10th overall on the 2019 International Tax Competitiveness Index, two spots better than in 2018.
- The corporate rate of 19 percent is below the OECD average (23.6 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.
- Consumption taxes have a high compliance burden and apply to a relatively narrow base.
- Net operating losses cannot be carried back and can only be carried forward for five years.
- The Czech Republic levies an estate tax and transfer taxes on real estate.