Czech Republic - Economic analysis of government policies, investment climate and political risk.






CZECH REPUBLIC: Economic Policy Analysis

This site presents an analysis of the Czech Republic government's economic policies compared to a revised list of 34 economic policies as prepared by Lucie Wittichova with the McKeever Institute of Economic Policy Analysis (MIEPA) in May 2012.

To read the analysis scroll through this site. To learn more about the background policies, click here: Introduction and Policy Recommendations

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The study is by Lucie Wittichova, a Czech native who currently [May 2012] lives in San Francisco; this study presents the Czech Republic government's economic policies as compared to the MIEPA list of policies as outlined above. The ratings herein are based on the following rating scale:


5.0 Perfect Facilitation of Wealth Creation
4.0 Midway between Perfect and Neutral
3.0 Neutral Effect on Wealth Creation
2.0 Midway between Neutral and Obstructionist
1.0 Perfectly Obstructionist to Wealth Creation
[Rating scale copyright Mike P. McKeever, 2012. Used herein with permission]

To read a disclaimer about the analysis in this file, scroll to the bottom of the file.

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        1               5.0          15.0             15.0       100 %

        2               5.0          15.0             15.0       100

        3               4.0          12.0             15.0        80

        4               4.0          12.0             15.0        80

        5               5.0          15.0             15.0       100

        6               5.0          15.0             15.0       100

        7               5.0          15.0             15.0       100

        8               4.0          12.0             15.0        80

        9               3.0           9.0             15.0        60

        10              5.0          15.0             15.0       100

        11              4.0          12.0             15.0        80

        12              5.0          10.0             10.0       100

        13              5.0          10.0             10.0       100

        14              5.0          10.0             10.0       100

        15              4.0           8.0             10.0        80

        16              3.0           6.0             10.0        60

        17              3.0           6.0             10.0        60

        18              3.0           6.0             10.0        60

        19              3.0           6.0             10.0        60

        20              5.0          10.0             10.0       100

        21              4.0           8.0             10.0        80 

        22              3.0           6.0             10.0        60

        23              5.0          10.0             10.0       100

        24              5.0          10.0             10.0       100

        25              5.0          10.0             10.0       100        

        26              3.0           6.0             10.0        60

        27              4.0           8.0             10.0        80

        28              2.0           4.0             10.0        40

        29              4.0           4.0              5.0        80 

        30              4.0           4.0              5.0        80

        31              5.0           5.0              5.0       100

        32              4.0           4.0              5.0        80

        33              5.0           5.0              5.0       100

        34              3.0           3.0              5.0        60

   TOTAL              141.0         306.0            365.0        83.8%
                      =====        ======            =====        =====


# 1. Freedom from internal control 5.0

“The law provides for freedom of movement within the country, foreign travel, emigration, and repatriation, and the government generally respected these rights in practice,“ says 2008 Human Rights Report, published on,

Also, according to the report above, the Czech Government and the Office of the UN High Commissioner for Refugees and other humananitarian organizations coordinate the current situation and protection, and assistace for internally displaced persons, refugees, returning refugees, asylum seekers, stateless persons, and other persons of concern.

The law prohibits forced exile, and the government did not employ this practice.

# 2. Freedom of speech 5.0

The law supports the freedom of speech, writing and press. The independent media actively expresses variety of discutions, debats and opinions without any restriction. There are many life shows where are invited usually politics, writers, representatives of social and other groups to talk and represent their ideas to the whole country, potentionaly to the whole world.

According to the 2008 Human Rights Report: Country Reports on Human Right Practices, there is a information about the Czech law that “mandates prison sentences of 6 months to 3 years for persons who deny Communits era crimes of the Nazi Holocaust. Speech incinting hatred based on race, religion, class, nationality, or other group affiliation is also illegal and carries a sentence of up to three years in prison. There were no reports of prosecution on these grounds during the year.“

Private radio and TV stations provide stiff competition for their public rivals. Public broadcaster Ceska Televize (CT) operates two TV networks and a 24-hour news channel. Public radio, Cesky Rozhlas (CRo), operates three national networks as well as local services. Two major private TV channels broadcast nationally and there are scores of private radio stations. BBC World Service is available on FM in many cities and towns. The country is pressing ahead with the digitisation of TV broadcasting; there are plans to switch off analogue signals by 2012. Press freedom is protected by a charter of basic rights. However, Czech and foreign media organizations criticized an amendment to the penal code in 2009 that made it an offence for journalists to make public the contents of police wiretaps. Around 6.7 million Czechs were online by June 2010 (Internetworldstats).

The press 
·	Lidove Noviny - Prague-based national daily, former dissident publication 
·	Mlada Fronta Dnes - Prague-based national daily 
·	Pravo - Prague-based national daily 
·	Blesk - Prague-based tabloid daily 
·	The Prague Post - English-language 
·	Czech TV - public, operates mainstream channel CT1 and cultural channel CT2 
·	CT 24 - public TV news channel 
·	TV Nova - private 
·	Prima - private 

·	Czech Radio - public broadcaster; operates national and regional networks 
·	Radio Prague - Czech Radio's external service; programmes in a number of languages including English 
·	Frekvence 1 - private, national 
·	Radio Impuls - private, national 
·	Evropa 2 - private, national 
News agency/internet 
·	CTK - English-language pages 
·	Prague Daily Monitor - online news in English

# 3. Effective, fair police force 4.0

The Czech Police is effective. Unfortunately, is still a risk pool of the potential corruption which is still happening in the country. “The Czech Republic has no major problems related to the integrity of the state. There are no separatist movements or territorial enclaves.”

# 4. Private property 4.0

The Property Rights Index measure counts 65 points for the Czech Republic. The score is counted as 0 – 100. The higher score means better protection of the property owners. It measures the degree to which a country’s laws protect private property rights, and the degree to which government enforces those laws. The Global Property Guide considers protection of property rights as a significant factor affecting the desirability of a residential real estate investment.

The Bti-Project. Org has published such information about the Czech Republic’s property situation: “Property rights are sometimes limited by overriding rights of constitutionally defined public interests, for instance by highway construction.“ There are still some, especially state-owned, companies, that need to be transformed through the privatization, f. e. Czech Energy Company (CEZ), Prague Airport, Czech Post, Brewery Budvar or Lesy CR (Woods of the Czech Republic), into the join-stock companies.

# 5. Commercial banks 5.0

There is two-levels bank system in the Czech Republic - the Central National bank and other commercial banks. The CNB is unprofit institution managing the banking system, monetary policies. The commercial banks, also called business banks are business subjects, licenced by the CNB and are under its control, have to act according to current Czech and EU laws. They have three main functions, such as: depositing, loaning and arrange (negotiate) function.

The main commercial banks in the country are: Ceska Sporitelna, Komercni banka, CSOB, Citibank, GE Money Bank, Raiffaisen Bank, UniCredit Bank, Postovni Sporitelna, Hypotecni banka, and others.

# 6. Communication system 5.0

There isn’t any serious issue reaching and be reached within the country. The current telecomunication services are operated by: Telefonica O2, T-Mobile, Vodafone, U:fon, using the GSM communication wave. Internet is also easy to get / it might be through cabel system or by operators of the telecomunication services. To call abroad, dial 00 + country code + national number of the line being called abroad E.g. to call a number in the United States, dial 00 + 1 + area code + local number

# 7. Transportation 5.0

All kinds are easy to access in the Czech Republic, included roads, rail, air and ship. The only issue might be a quality of the roads and/or the delays of the transportations. The main airline is CSA,, The rail state company is Ceske Drahy,, For ships is there Statni Plavebni Sprava,

# 8. Education 4.0

Education system in the Czech Republic: School attendance of an elementary school and lower secondary (an early part of gymnasium) is 6 to 15. After nine years, students may continue at three basic types of upper secondary school: vocational training centres, secondary school, or gymnazium. Undergraduate and graduate studies are offered by universities (three to four- year bachelor programms). Master and doctoral programms are offere also by universities. The Ministry of Education, Youth, and Sports is available for more information on their website:

Czech State guaranteees equality of access to work, education and social services. Also protection of sex discrimination was legaly implemented to the Czech law and system. 4.2% of GDP was spent on Education during year 2007.

Instituce for Information on Education offers all the current informations about a school system, statistics, labor and other services, supported and operated by Ministry of Education, Youth and Sport in the Czech Republic. Public expenditure on Education as a percentage of GDP The Czech Republic spends on education around 4% of GDP since year 2000.

Year	2000	2002	2004	2006	2008	   
% of GDP	4.0	4.3	4.4	4.6	4.08	 
Source: Czech Statistical Office
# 9. Social Mobility 3.0

It is hard to say if the talented person (no matter if child or adult) would have better opportunities in different town. There is true that a good connection may help. A good idea would be relocating to Prague. The capital has a lot to offer.

# 10. Freedom from outside control 5.0

Subjectively, I can say that I feel safe in the Czech Republic. There is no reason to be scared. I don’t think that citizens of other countries should have any problems. However, there exist certain contract between the Czech Government and other countries. In cases of refugee or crime happened in other country, I’m not able to say exactly what kind of process will happen. It will depend on the exact situation.

# 11. Protection of Domestic Enterprises 4.0

There is a support by the Czech Government, in many industries, services and creating goods, but also still a room for better support, more strict rules and regulations There is a possibility to apply for the financial support by the National Budget, some industries or regions.

Here are few examples: Each ministry in the Czech Republic is responsible for its money for given year. It is separated by the size of the company, which supports small and middle size companies by the Ministry of Industry and Trade. In the middle of the last year, it established a new program, related with the easiness of reaching loans from banks for the newly created business, for star-ups.

As another tool was established a reward, called Program START, which was created as a reward of quality, similar to European Foundation for Quality Management, helping to companies get over the World Economic Crisis.

Ministry of Agriculture helps to start business and reach the grants offered by the EU to young agricultures. The young farmers, in the age up to 40 can apply for 40.000,-- EUR to realize their business plans, buying machines, reconstructions or land.

To Research and Development goes 0.5 milliard CZK from the National Budget in 2012. 120 different projects will share this money. The only expectation is to create a useful product which can have a potential on the market.

# 12. Foreign currency transactions 5.0

The current situation in the country establishes the Czech Crown as the only official currency in the state.

The money used for businesses in the Czech Republic must be converted into the Czech Koruna. The most popular Czech Republic Koruna exchange rate is the EUR to CZK rate. The current information about the Czech Koruna, all changes, settings and rates are easy to find on the website of the Czech National Bank,

# 13. Border control 5.0

Entry the country within European Union is safe, citizens of other countries have to proof their legal documents to entry the country The Czech Republic has borders with 4 countries, such as: Germany, Austria, Slovakia and Poland. On September 1st, 2007, the Czech Republic gained access to the Schengen Information System (SIS). The Schengen area is a zone which comprises the territories of individual EU Member States where specific rules of the Schengen Agreement apply with regard to border security, citizen's personal data protection, recirpocal cooperation between the signatories' law enforcement services, issue of visas to foreign nationals. Close cooperation with other EU members leads to improvement of the general public security level including crime and combating and prevention.

# 14. Currency 5.0

Czech Koruna has been stable. The only official currency in the Czech Republic is the Czech Koruna or Czech Crown, CZK. It was introduced in 1993, after the separation from Slovakia and it replaced the Czechoslovakian koruna. The Economic crisis has not had a huge impact on the Czech currency. The annual average for daily nominal exchange to euro was 26.4 (2009) and 25.3 (2010) CZK to one euro. The government and the CNB have agreed on fixing the current difficulties of the country instead of starting to change the currency. And it is the reason to postpone the target year for joining the eurozone. Originally it was supposed to be in 2012.

# 15. Cultural, language homogenity 4.0

There are some minority groups they may feel discriminated. But there is no violence, especially weakness of armed conflict, especially within the country’s residents.

# 16. Political effectiveness 3.0

There are gaps that need to be improved The Czech Republic has a complex of legal rules. Political effectiveness has a good legal background., however, the length of processing information.

and the effectiveness may take too long to solve a problem. But there is a lack of transparency in decision-making process by state agencies, difficulty in communication between them and the bureaucracy around it. „The democratically elected parliament and government of the Czech Republic have effective power to govern, and are not constrained by any non-democratic veto powers.“ „Freedom of association and assembly is unrestricted within the Czech Republic, are guaranteed by the constitution and regulated by several legal acts.“

# 17. Institutional stability 3.0

The stability of the courts, schools, law enforcement and businesses could get high score but there are several non-sympathetic affairs.

Government showed us that their performance can be not as stable as it could be. In March 2009 fall the government with its leader, Jiri Topolanek. It was a result of continuous struggle between politic sites and growing policy disagreement in the government coalition. However, the Czech Republic's government has many responsibilities. One of the main ones comes with the membership of the European Union. According to Transformation Index BTI 2012, there is a message about a corruption that appeared in the educational institution, called “Plzen Affair”. It was pointed out that many students, gained their degrees in very short periods of time. In this cause were involved also many politics, lawyers, police officers, judges, and employees of the faculty.

# 18. Honest Government 3.0

According to the Corruption Perceptions Index - The Czech Republic holds 4.4 - points score, and the 57th position of 183 researched countries. “The Corruption Perceptions Index ranks countries/territories based on how corrupt their public sector is perceived to be. A country/territory’s score indicates the perceived level of public sector corruption on a scale of 0 - 10, where 0 means that a country is perceived as highly corrupt and 10 means that a country is perceived as very clean. A country's rank indicates its position relative to the other countries/territories included in the index.”

# 19. Common laws 3.0

There are many affairs proving that this country can still improve the law implementation and its functions. “ Supreme Court; judges are appointed by the president for an unlimited term; Constitutional Court; 15 judges are appointed by the president and confirmed by the Senate for a ten-year term; Supreme Administrative Court; chairman and deputy chairmen are appointed by the president for a 10-year term; judges are appointed by the president for an unlimited term“,

# 20. Central Bank 5.0

This institution is independent and interventions in its activities are only permissible on the basis of a law. The CNB is the central bank of the Czech Republic and the supervisor of the Czech financial market. It is established under the Constitution of the Czech Republic and carries its activities in compliance with Act No. 6/1993 Coll., on the Czech National Bank (pdf, 137 kB) and other regulations. The management of the CNB, Bank Board, all members are chosen by the President of the Czech Republic. The CNB Governor, two Vice-Governors, and four Bank Board members. All can be voted for maximum of six years.

“Under Article 98 of the Constitution of the Czech Republic and Act No. 6/1993 Coll., on the Czech National Bank, as amended, the primary objective of the CNB is to maintain price stability. Achieving and maintaining price stability, i.e. creating a low-inflation environment in the economy, is the central bank’s ongoing contribution to the creation of conditions for sustainable economic growth. Central bank independence is a prerequisite for effective monetary instruments conducive to price stability. Without prejudice to its primary objective, the CNB also supports the general economic policies of the Government.”

# 21 Domestic budget management 4.0

in creating the Federal Budget and it holds it as close as possible.

In Millions of Czech Krowns 
Year	Created Budget Income	Created Budget Spending	Real Income	Real Spending	   
2007	949.48	1.040.78	1.025.88	1.092.27	   
% of reality			106.2	103.3	   
2008	1.036.51	1.107.31	1.063.94	1.083.94	   
% of reality			101.9	97.2	   
2009	1.114.00	1.166.18	974.61	1.167.01	   
% of reality			86.1	98.5	   
2010	1.022.22	1.184.92	1.000.38	1.156.79	   
% of reality			94.8	95

# 22 Government Debt 3.0

I don't think that the current economic situation is very positive nowhere around the world, according to the World Economics Crisis. The Government's debt in last a few years: Consolidated as a percentage of GDP: year – percentage> 1995 – 14.0, 2000 – 17.8, 2004 – 28.9, 2006 – 28.3, 2009 – 34.4, 2010 – 37.6.

Each Czech debts almost 143.000,-- Czech Crowns in average ($ 8.412,--, counted as 17Kc / 1 USD). The Government Debt increased to 1.499 billions CZK ($ 88 billions). Internal debt is 1.182 milliard CZK, external debt is 317.2 milliard CZK.

# 23 Economic statistics 5.0

There are many useful statistics that are easy to reach and find on the websites about the Czech Republic. The main government's agency is: Czech Statistical Office. On it's website is possible to find all the most important information, such as about: Population, Gross Domestic Product, Gross wages, Inflation Rate, Industrial Output, Construction Output. It is also possible to find other important information about Environment, Labor, Social Statistics, Agriculture, Forestry, Industry, Education, Culture, Health, Macroeconomics, External Trade or Prices. Household income or consumption by percentage share: Lowest 10% : 1.5%, highest 10% - N/A (2009 est.).

# 24 Protection of public health and safety 5.0

According to CIA: world factbook, The infant mortality rate is in total 3,7 deaths / 1.000 live births (2012 est). Country comparision to the world is 205st position of 222 – with the lowest infant mortality.The lowest infant mortality in 2012 was in Monaco with 1.8 (222nd position). Compare with other Western, industrialied countries: 2.21 in Japan (221st position), 3.51 in Germany (208th position), 4.49 in European Union (190st position), 5.98 in USA (174th position). Male: 4.03 deaths / 1.000 live births, female: 3.35 / live birhts. (2012 est.) Health expenditures were 7.6% of GDP (2009 est.) - country comparison to the world: 63. HIV/AIDS deaths: fewer than 100 (2009 est.), country comparison to the world: 141.

# 25 High wage policies 5.0

The Ministry of Labor and Social Affairs supports the amount of the minimum wage in the country. It changes every year according to the current economic situation. The minimum wage is described as “the lowest acceptable reward for work in the work-law relationship”.

The employer has to pay the social and health insurance for every employee. Each employee also pays both kinds of insurance to the state from their salary too. Currently it is 4,5% for the health care, 8% for the social insurance. In case of loose of the job, the government will support the worker for 6 months with regular payments according to other circumstances, law and rules.

# 26 Environmental protection 3.0

There is a gap brought by the past governments that needs to be fixed, for example production of the brown and black coal in the North and East of the country. There is needed to be settle up more strict policies.

Ministry of the Environment of the Czech Republic has been regularly monitored. It publishes two reports: State of the Environment Report, presented by the Government to the House of Representatives, and the Statistical Environmental Yearbooks. Both reports represent information of the state of the environment for the recent year. They are publicity available. “The document summarise the current knowledge on the state and trends of the individual environmental components, environmental impacts of the economic sectors, environmental policy instruments, impact of the current state of the environment on human health and ecosystems, and the state of the environment in an international context.”

The Czech Republic established many environmental policies for securing the environmental protection. Good environmental quality is for healthy population and increases the attractiveness of place for living, work and investment. Environmental funding supports a vital basis for the preparation of varieties of projects possibly implemented with public and European Union funds and aim at improving the state of the environmental components, thus contributing to sustainable development. The Ministry of the Environment has also established rules for taxes and fees, in a document named as Environmentally related taxes database, related to the purpose of record-keeping as “obligatory payments to the State without compensation by any reciprocal service, imposed on taxes bases regarded as particularly relevant in relation to the environment,” according to OECD.

# 27. Strong army 4.0

Ministry of Defence is a government agency for security of the Czech Republic. It is responsible for the development of the military strategy of this country, and for coordination of defence planning within defence department. Army of the Czech Republic is a member of NATO, EU, and other international security organizations.

According the membership of NATO activities, the Army CZ is involved in Nuclear Planning Group, and for legal support in international cooperation and foreign relations.

The Czech Republic has a good security system. The Police of the Czech Republic and the Town Police work properly. It is a safe country for everyone. There is low % of criminal activities. 1.15% of GDP (est. 2011). Country comparison to the world: 120.

According to CIA Factbook: “Army of the Czech Republic (Armada Ceske Republiky): Joint Forces Command (Spolocene Sily); includes Land Forces (Pozemni Sily) and Air Forces (Vzdusne Sily). note: the Ministry of Defense plans to abolish the Joint Forces Command in 2012 and reestablish separate Land and Air Forces Commands (2012)”,

#28. Foreign trade impact 2.0

Export of goods and services in year 2011: 146.7 billion USD, Import of goods and services in year 2011: 143.5 billion USD, GDP 2011 = 272.2 billion USD

Total of annual imports and exports of goods and services in year 2011: 146.7 + 143.5 = 290.2 billion USD in 2011 Divided by the result of country’s GDP for the same year: 290.2 : 272.2 = 106.7% of GDP. This is very trade dependent and a potential danger.

# 29. Management of foreign currency budget 4.0

The current score is 1.176% of GDP Foreign trade stastics: Export of goods and services in year 2011: 146.7 billion USD, 116.7 in year 2010 - Import of goods and services in year 2011: 143.5 billion USD, 113.9 in year 2010 - The total of last years’s exports of goods and services is substracted by last year’s imports of goods and services:

146.7 – 143.5 = 3.2 billion USD GDP 2011 = 272.2 billion USD = 100% 3.2 billion USD = 1.176%

# 30 Layers of collective action 4.0

Strong labor security, employees are supported by the law and other official organizations, but there is still room for improvment - Industrial relations - Collective bargaining

Czech law distinguishes between enterprise-level collective agreements (ELCAs), concluded trade union body and an employer, and HLCAs, concluded for a greater number of employees by the relevant higher-level trade union body and an organization or oganizations of employers. Collective bargaining is pretty common tool for keeping clean the relationship between firms and employees. However, there is no central register of ELCAs. According to data from Ceskomoravska konfederace odborovych svazu, ?MKOS, out of 32 trade unions in 2008 a total of 18 agreements at higher level, covering around 5.300 employers and 607.000 employees. For years 2010 to 2014, it has concentrated on getting benefits for their members and getting new ones, and help them to cover the negative effects coming with influence of the global financial crises.

#31 Pro-business climate 5.0

The Czech Statistical Office offers a great source of information needed as a support to make a decision wheather open a new business in this country or not The Czech Republic has a great location in the hearth of Europe. It is unbeatable location in the centre of the European Union, which the Czech Republic is a member of it and also it benefits from the membership. The price of properties, business, consumables and labor cost is still very low compare to other Western countries in Europe, f. e. Germany or Austria. The Czech Republic offers a high living standard, an educated population (most of the Czechs speaks at least two languages, mostly Czech and English or German), a vibrant economy, a stunning country side and one of the Europe’s most beautiful capital cities, Prague.

#32 Government enterprises 4.0

Governmental institutions The Ministry of Industry and Trade of the Czech Republic (MIT) have set up a few instruments in support of business. These include special Regional Programmes created by the Ministry of Regional Development (MRD)

Government organizations and departments Czech Stastistical Office :,

# 33. International security agreements 5.0

National Security Authority Is an control organ of executive, established by the law n. 148/1998 Sb. Is responsible for personnel and facility security clearance procedures, Issues personnel security clearance certificates, facility, security clearance certificates and security eligibility certificates, Has over all competences in the area of the protection of classified information (including supervision and methodology), Maintains the central registry of CI and approves establishment of registries in the state bodies and in facilities, Approves a release of classified information internationally, Carries out a certification of technical means, information systems, cryptographic devices, cryptographic sites and shielded chambers, develops and approves national cipher algorithms and creates a national cryptographic protection policy, issues security standards on the protection of classified information, Performs tasks of National Distribution Agency, National Communication Security Agency, National TEMPTEST Agency, National Information System Security Agency, Is responsible for recognition of personnel and facility security clearances.

The European Union actively supports business, especially small ones, giving free, peronalised assistance through a series of pan-European networks and services: Enterprise Europe Network, SOLVIT, European Employment Services (EURES), European Consumer Centres Network (ECC-NET), Interactive Policy Making, China IPR SME Helpdesk, European Ombudsman, European Small Business Portal, European Business Test Panel, Communication and Information Resource Centre for Administrations, Business and Citizens, European Associations

#34 Protection of domestic enterprises from government mandates costs 3.0

Rules and laws given by the state and restriction established by the European Union Basically, it depends on the on an exact kind of business. There are 21 main areas that have separate rules according to each area, such as: Security, Ecologie, Culture, Social services, Law services, Veterinary, etc.

The Czech Republic has two kinds of taxes payments – Direct and Indirect. Direct Taxes Personal Income Tax is regulated by Act No. 586/1992 Coll., on Income Taxes. All natural persons having their residence in the territory of the Czech Republic or persons living there are its payers. The regular tax period is the calendar year.

The obligation of paying tax is the sum of all incomes, which the law divides into income from employment, income from business, lease, capital income and other income. Tax base is the gross wage + Social and Health Insurance contributions paid by the employer. From certain kinds of income, payers may deduct expenses incurred to generate, secure and maintain the income, either in their actual amount or as a percentage of their income fixed by law ( it depends on the kind of business, it ranges from 40% to 80%).

Indirect Taxes Value Added Tax (VAT) is regulated by Act No. 235/2004 Coll., on Value Added Tax. VAT registration liability applies to persons with a turnover exceeding CZK 1.000.000,--/approx. EUR 39.500,-- a year. Persons with a lower turnover may register voluntarily. As from 2008, the Act makes it possible for a group of persons tied by capital to register as one VAT payer. Persons engaged in tax exempt activities (e. g. financial services) are not required to register.

Income collected by taxes and other revenues made up 23.9% of GDP.


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