Taxation in The Czech Republic

The Czech tax system primarily differentiates between direct and indirect taxes. These groups consist of:

DIRECT TAXES

• Personal income tax (PIT)

• Corporate income tax (CIT)

• Inheritance and Gift tax

• Road tax

• Real estate and Real estate transfer tax

INDIRECT TAXES

• Value added tax (VAT)

• Excise duties

• Tax on natural gas and several other types of gases

• Tax on solid fuels

• Tax on electricity

The most important taxes from the above lists are in the term of tax collection value added tax, excise duties, personal and corporate income tax. Nevertheless, social and health security contributions are the biggest source of state revenues.