Czech Republic Highlights:
- An entity solution is available via 1WB’s 100% subsidiary company to deploy local and foreign employees in the Czech Republic and ensuring fully compliance with country’s regulations.
- The whole deployment process for foreigners takes about 3 weeks whereas for locals within 1 week.
- Handling payroll processing, immigration and taxes compliantly, swiftly and cost efficient.
- The personal income tax (PIT) rate is 15%.
- The corporate tax rate is 19%.
- Income tax is deducted at source, taking into account the following band rates:
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Social security contributions - The employer contributes 9% of the employee’s gross salary to the state health insurance funds and 24.8% of the employees’ gross salary to the state social security funds.
There is an annual cap on the contributions to the social security funds.
The employee contributes 11% of gross income (4.5% health insurance and 6.5% old-age pension).
A self-employed individual is subject to a mandatory contribution of 42.7% (13.5% health insurance, 28% old-age pension and 1.2% unemployment) on the assessment base.
There is no maximum assessment base for health insurance purposes.
The maximum assessment base for social security purposes (i.e. old-age pension contributions and unemployment insurance) is 48 times the monthly average wage.
- Work permit - 1WB can sponsor work permits for foreign employees and the processing time is about 4 months.