27.5.2013
News

New Withholding Tax Rate

Effective 1 January 2013, a new 35% withholding tax was introduced. The tax shall apply to payments of income to foreign tax residents who are not residents of

  • another EU Member State; or
  • the EEC; or
  • a country which entered into a Double Tax Treaty with the Czech Republic; or
  • a country which is a party to an effective TIEA (see above).

The General Tax Directorate issued information for natural persons and legal entities on how to prove tax residency for the purpose of determining withholding tax under the Income Tax Act.

The information is addressed to parties responsible for applying withholding tax. If a taxpayer fails to prove he/she is a Czech tax resident or another contract country’s tax resident, he or she will be considered a resident of a non-contract country on whom the 35% withholding tax shall be levied.

The Ministry of Finance lists support methods for proving tax residency status, such as via an ID for natural persons, registration of a registered office with the relevant public register for legal entities, or an affidavit for both. Should the party responsible for paying the withholding tax have any doubt regarding the tax residency of the person to whom it pays the taxable income, we recommend that it require the person to submit a tax residency certificate issued by the relevant authority in the relevant country.

Other articles

1.4.2025
News

We Succeeded in Another International Ranking

Just a week after the results of the Chambers Europe ranking were announced, we’re thrilled to share more great news – the renowned Legal 500 has published its annual overview of the leading law firms in the EMEA region, and we have once again confirmed our strong market position.
26.3.2025
News

We Confirmed Our Strong Standing in the Chambers Europe Rankings

We are pleased to announce that we have confirmed last year’s strongest-ever results in the Chambers Europe rankings, published by Chambers & Partners. In the 2025 edition, KŠB once again received excellent rankings in 11 categories. In addition, 13 of our colleagues received individual recognition—our best result in the firm’s history. This year’s recognition is crowned by a nomination for the prestigious Chambers Europe Awards 2025 for the best law firm in the Czech Republic.
5.3.2025
News

First Commentary on the Bonds Act Published

C.H. Beck has released the first-ever commentary on the Bonds Act, authored primarily by KŠB’s Jan Lasák, Jan Dědič, and Josef Kříž. Spanning over 700 pages, this comprehensive publication provides an in-depth interpretation of the Act’s individual provisions, drawing on the authors’ extensive expertise in corporate finance