For companies doing business across borders, tax is fast becoming one of the single largest compliance burdens and expense items. Hard-pressed governments across the world see raising tax rates, or increased audits and administrative requirements to trigger fines and interest penalties, as a key component of supporting their revenue bases. Add the lack of harmonisation between jurisdictions and the burden can quickly seem overwhelming.
Our specialist tax professionals around the world are expert at managing both direct (corporate income tax) and indirect tax (VAT, GST, sales taxes, IPT) compliance. We also increasingly help international companies manage their Withholding Tax obligations. Every year, we complete more than 200,000 tax filings across most jurisdictions, ensuring the reporting is complete, all deadlines are met and that clients have full control and transparency of the whole process. When it comes to taxation, the reporting requirement can be a burden - and one which could take your focus away from your core business. Talk to us about your needs, and let TMF Group take care of the hassle for you.
We are also the largest independent provider of VAT registration and return services, and can help keep you compliant with all the numerous local requirements.
Our Czech office can provide you with the following tax compliance services:
- Registration with tax authority
- Assistance with tax calculations and settlements with the tax authorities
- Managing filings and payments through local bank accounts
- Taking care of parafiscal charges and stamp duty
- Handling queries from the authorities, including managing tax audits
- Handling basic questions, notices or assessments from the tax offices
Major taxes applicable to legal entities established in the Czech Republic:
- Corporate income tax: working alongside our Accounting and Reporting teams, our corporate income tax (CIT) experts are able to ensure that clients’ direct tax reporting obligations are fully met.
- VAT: once registered, companies are required to submit periodic filings (monthly or quarterly) and make regular VAT payments. Each country has highly detailed requirements, enforced by tough penalties and interest charges for infringement. We are on top of the rules and can help your business stay fully compliant, while removing anxieties over potential delays of or penalties for your VAT returns. If your business incurs foreign VAT, you may be able to recover some or all of it. Offering an efficient and secure service, our extensive office network can process and repay VAT reclaims rapidly, helping to improve cash flow.
- Intrastat: to report the movement of goods within the EU, companies may be required to complete a periodic (usually monthly) Intrastat report. This includes not only goods sold but also goods moved between branches of the same company, such as between warehouses for onward sale. The Intrastat filing gives details of each shipment - including detailed trade classification of goods, quantities, shipping costs and country of departure/arrival - and there are many exemptions which, again, vary between countries. Reporting thresholds for each EU country also vary.
- EC Sales List: sales to EU customers outside of a company's home state may have to be reported on the EC Sales List (ECSL). Typically filed on a quarterly basis - although this varies around the EU - the ECSL details the customers' name, local VAT registration number and the value of the taxable supplies. Reporting thresholds for each EU country vary.
- Road tax: road tax is payable annually by the operator of a vehicle used for business purposes.
- Real estate tax and real estate transfer tax: the tax on buildings applies to owners of real estate located in the Czech Republic and varies based on the area occupied. The tax on the acquisition of real estate is payable by the seller.