(Last updated: 3 Mar 2012)
Taxation
The current tax system was introduced in 2005. A value added tax (VAT) is levied on all sales of goods and services, through two rates – 19 per cent for goods and five per cent for certain selected goods and services (ie. some agricultural products, essential food, selected pharmaceutical products, construction works). Most of the products have 19 per cent VAT.
Excise (consumer) taxes are applied to hydrocarbon fuels and lubricants, spirits and distilled liquors, beer, wine and tobacco products that are produced in or imported to the Czech Republic.
The standard rate of corporate tax is 24 per cent and the personal income tax rate varies from 15 per cent to 32 per cent depending on the amount of annual income.
Top Business Risks
OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.
Bilateral agreements
Australia has social security agreements with several countries that address the issue of 'double super coverage' for employees sent to work overseas. To take advantage of these agreements, Australian employers sending employees overseas to work must apply to the Tax Office for a Certificate of coverage.
For more details, please visit the Australian Taxation Office website.