Czech Republic: Resident status information for tax purposes.

Determination of tax resident status for individuals.

The general rules are set out in the Income Tax Act, which states that an individual is a tax resident of the Czech Republic if his place of residence is the Czech Republic, or if he lives in the Czech Republic for more than 183 days in a calendar year.

In accordance with the above law, the place of residence for an individual is the place where the individual has a permanent home (in circumstances from which it can be concluded that he intends to always stay at this address).

At the same time, if an individual is located in the Czech Republic for the purpose of study or treatment, then he is a non-resident, even if he lives in this territory for more than 183 days in a calendar year.

These general rules are influenced by the wording of double taxation treaties in which tax residency is governed by article 4 of the relevant tax treaty between the Czech Republic and another state.

Determination of tax resident status for legal entities.

The general rules are set out in the Income Tax Act, which states that the company is a tax resident in the Czech Republic if its location or place of effective management is located in the Czech Republic.

These general rules are influenced by the wording of double taxation treaties in which tax residency is governed by article 4 of the relevant tax treaty between the Czech Republic and another state.

Foregoing treates also identifies the types of entities that, as a rule, are not considered tax residents.. Czech tax law does not ascribe tax residency to companies, such as a limited partnership or a full partnership, due to the transparency of their organizational structures, and in which tax residency is determined for the partners, and not for the partnerships themselves.