Property taxes in the Czech Republic - on real estate and on road vehicles used in economic activities - are among the lowest in Europe, but at the same time they are the most administrative burdensome taxes from the entire spectrum of taxes specified in Czech regulations.
Road tax, which is actually a tax on the use of road vehicles for economic (economic) activities, applies to almost all entrepreneurs. By law, the tax obligation applies to any vehicle used for business purposes, even if it is not listed in the company's assets.
In practice, this means that even a private car used in business - even occasionally - is taxed in proportion to the number of days in a year in which it was used to generate income. At this time, the entrepreneur can deduct fuel (according to the actual consumption based on the mileage record or a flat rate) and proportional costs of use (e.g. service).
Calculating the tax requires a thorough knowledge of the regulations. Its height is determined by numerous factors, including engine volume, number of axles, age of the vehicle, and even the exhaust norm and fuel type. Semitrailers and trailers are not excluded from the tax.
Although the amounts of this tax are usually not astronomically high, the legislator did not make life easier for entrepreneurs. In the first year of car purchase, the tax is payable by the end of January of the following year based on the submitted tax return. In the following year, quarterly advances must be paid based on the last declaration, and after submitting the declaration (after all, the car gets old and the tax increases), in the following year, by January 31, the difference between the advance payments and the due tax should be compensated.
The tax excludes vehicles that have not been registered in the territory of the Czech Republic.
Real estate tax
This tax - which goes to municipalities - applies to all real estate, plots and land - whether or not they are used privately or in business. The tax calculation is complicated. The terms and method of payment are also specific.
Well, according to the law, property tax is paid by the taxpayer who owned the property on the first days of the year for the whole year. The tax is paid in advance by May 31 of a given year. For tax receivables of more than SEK 5,000, the tax can be paid in two installments, until May 31 and November 30.