Market Taxation Guide - Czech Republic
This Market Taxation Guide (Czech Republic) provides the following details:
- Reference information about all taxes applied at source, through Clearstream Banking1 and its local depositories, to securities deposited in Clearstream Banking; and
- Instructions for obtaining relief at source or a refund of withholding tax, where these are available, through Clearstream Banking.
New and improved tax information and procedures that become available will be included on an ongoing basis.
Important note:
This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter. Readers of this Market Taxation Guide, whether customers or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice.
Withholding tax
Debt Securities | Holding restriction | Withholding tax rate | Relief at source | Quick refund | Standard refund | |||||
No | 35% a | |||||||||
Residents of Double Taxation Treaty (DTT) countries | Yes | Yes | Yes | |||||||
European Union/European Economic Area (EU/EEA) pension funds | Yes | Yes | Yes | |||||||
EU/EEA residents | Yes | Yes | Yes | |||||||
Central banks | Yes | Yes | Yes | |||||||
Supranational and International Organisations | Yes | Yes | Yes | |||||||
Czech legal entities | Yes | Yes | No | |||||||
Czech individuals | Yes | Yes | No | |||||||
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a. For bonds issued before 31/12/2012, our depository applies a special calculation method (per 1 bond and rounded down), so that the effective tax rate may be lower than 35%.
Equities | Holding restriction | Withholding tax rate | Relief at source | Quick refund | Standard refund | |
No | 35% | |||||
Residents of Double Taxation Treaty (DTT) countries | Yes | Yes | Yes | |||
EU/EEA pension funds | Yes | Yes | Yes | |||
EU/EEA residents | Yes | Yes | Yes | |||
Central banks | Yes | Yes | Yes | |||
Supranational and International Organisations | Yes | Yes | Yes | |||
Czech legal entities | Yes | Yes | No | |||
Czech individuals | Yes | Yes | No | |||
Capital gains tax
There is no capital gains tax withheld through Clearstream Banking on securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.
Securement tax
The securement tax or collateral tax is the tax applicable to the sale of local securities to foreign investors (investors from EU/EEA area which do not have any DTT in place with Czech Republic) by local brokers. The securement tax rate is 1% and it is directly withheld by local brokers. Therefore, the tax should be included in the total price paid by foreign investors. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.
Stamp Duty
There is no stamp duty withheld through Clearstream Banking on securities held in Clearstream Banking. Stamp duty may however be payable on specific transactions. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.
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1. “Clearstream Banking” refers collectively to Clearstream Banking S.A. and Clearstream Banking AG (for Clearstream Banking AG customers using Creation accounts)