How complex are the tax liabilities?

The administrative burden linked to the tax liabilities in the Czech Republic is over average in the international comparison.

A „typical entrepreneurial subject“ spends 413 hours per year in activities linked to the preparation of documents, filling in forms and paying taxes. This number confirms the complexity of the tax system in the Czech Republic.

The measures taken to diminish the administrative burden the entrepreneurs in the Czech Republic are facing to are only partial and, on the contrary, there are new measures introduced that enhance this administrative burden. In international comparison, the Czech Republic is, in this respect, less well placed than not only Sweden, Luxembourg and the USA but also Hungary, Poland or Romania.

A comparison of the situation in different countries including the Czech Republic can be found in a report „Doing business 2015“ published by the World Bank. The report evaluates the entrepreneurial situation and the corresponding regulations in eleven areas such as starting business, building permit, enforcing contracts, getting credit, insolvency or paying taxes.

A corresponding article commenting the complexity of tax liabilities, based on the data from Doing business, has been published by the Institute for Research in Economic and Fiscal Issues (IREF).
Radim Klekner
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section Aktuálně
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