The following tangible fixed assets cannot be expensed directly and must be depreciated for corporate tax purposes:
Tangible fixed assets are classified into depreciation categories to which various depreciation periods from 3 to 50 years apply. Taxpayers are not obliged to depreciate an asset for tax purposes every year. The start of depreciation may be postponed and depreciation may be interrupted in any year and continued in a later year without a loss of depreciation potential.
Special rules apply to the depreciation of intangible fixed assets. The depreciation method differs depending on the year of acquisition and the type of intangible assets.
The total amount of investment incentives is up to 45% of eligible costs, depending on the location and size of an enterprise.
Investment incentives and subsidies include
– 11,500 per new job);
Resident and non-resident individuals may claim a basic personal tax allowance of CZK 24,840 per year. Czech tax residents may claim:
In addition, various deductions from taxable income may apply, for instance, for interest paid on a mortgage, for private contributions paid to pension schemes and private life insurance, for gifts to charity, etc.
R&D tax allowances – R&D costs can be claimed twice, i.e., as a standard cost and as a special tax deduction in the tax return. There are no limits and the deduction may be claimed every year.
Education tax allowances – deduction of costs relating to vocational or professional educational activities. The deduction relates to costs incurred for the acquisition of assets and costs concerning various activities relating to the education of students on the entrepreneur’s premises.