Capital city: Prague
Currency: Czech koruna (CZK)
GDP: USD$368 billion
GDP per capita: USD$34,681
The Czech Republic is an independent state in Central Europe bordered by Germany, Austria, Slovakia and Poland. The Czech state was formed in the late 9th century as the Duchy of Bohemia under the Great Moravian Empire. In 1002, the duchy became part of the Holy Roman Empire, becoming the Kingdom of Bohemia. With the dissolution of the Holy Roman Empire in 1806, the Bohemian Kingdom became part of the Austrian Empire. In 1918 the Czech lands became the core of the Republic of Czechoslovakia.
From 1968 to 1989 Czechoslovakia was occupied by the Soviets. In 1989 the communist regime collapsed and a market economy was reintroduced. On 1 January 1993, Czechoslovakia dissolved into the independent states of the Czech Republic and Slovakia.
The Czech Republic has the highest beer consumption per capita in the world and established their first brewery in 903. The famous ‘pilsner style beer’ (pils) originated in the western Bohemian city of Plzeň, where the world’s first-ever blond lager Pilsner Urquell is still being produced. Further south the town of České Budějovice (known as Budweis in German) lent its name to its beer, eventually known as Budweiser Budvar.
Legal Entities residing in the Czech Republic pay corporate income tax at the rate of 19% on their worldwide income. Foreign companies are only taxed on their Czech Republic sourced income. Investment funds have a special tax rate of 5% and for pension funds the rate is 0%. Individuals who are Czech Republic tax residents pay a flat 15% personal income tax rate.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2