Czech Republic

Czech Republic's Rankings
CategoryRankScore
Overall Rank1072.15
Corporate Taxes970.76
Individual Taxes588.47
Consumption Taxes3454.09
Property Taxes1367.08
International Tax Rules689.03

The Czech Republic ranks 10th overall on the 2019 International Tax Competitiveness Index, two spots better than in 2018.


Strengths

  • 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.

Weaknesses

  • 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.

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