SUPERCEDED

XII.   Withholding Tax

Withholding tax is imposed on several categories of income source in the Czech Republic. They are for example:

• Dividends from shares, interest and other corporate distributions (share on profit)
• Bank interest except interest on current accounts (for legal entities)
• Shares of the liquidation surplus
• Income derived by individuals from winnings in lotteries , betting, prizes from public and sporting competitions etc.
• Bank interest except interest on bank accounts determined for business (for individuals)
• Author's income

Payments to non-residents (individuals, who are neither domiciled in the Czech Republic nor staying here more then 183 days and experts) for Czech source income:

• Income from commercial, technical or other consulting or intermediary services
• Royalties and copyrights
• Income of lecturers, artists and sportsmen
• Interest to legal entities
• Interest to individuals
• Prizes and winnings to individuals (subject to tax exempt income)
• Rental income
• Lease with purchase option

The withholding tax is calculated on the gross income. Tax treaties often reduce the amounts.