How much corporate income tax does your s.r.o. pay on its profit, and what reaches you when you pay the rest out as a dividend? Nothing is sent to us.
How it is calculated
A Czech limited company (společnost s ručením omezeným, s.r.o.) pays 21% corporate income tax on its profit. The tax base is the accounting profit, corrected for costs that do not count for tax (such as fines, most entertainment and some car costs), rounded down to whole thousands of crowns.
When the company pays out a dividend (podíl na zisku), it withholds 15% tax and pays it to the tax office; the owner receives the rest and does not put it in a personal tax return. For an owner who lives abroad, the double tax treaty can lower the rate. Dividends carry no social security or health insurance, but an owner without other income pays health insurance on their own.
Tax advances for the next year
The tax of this year decides the advances (zálohy) for the next one. Up to 30,000 CZK: no advances. From 30,000 to 150,000 CZK: two advances of 40% each. Above 150,000 CZK: four advances of 25% each. Salary or dividends for the owner? Compare them with the salary or dividends calculator.
Official sources
Income Tax Act 586/1992 Sb. (§ 21, § 36, § 38a, § 25); financnisprava.cz.
