income from grants

The payers of corporate income tax are taxed with flat rate tax. In recent years, the rate of this tax
base has been gradually reduced from 40% in 1996 to 30% in 2000 as well as to 19% in 2004. This 19 %
tax rate is still at present.
The corporate income tax encompasses all revenue of legal persons, partnerships limited by shares,
organisational units without the status of a legal person, with the exception of companies without the status
of a legal person and tax capital groups, excluding revenues from:
agricultural activity (except special sections of agricultural production),
forest economy.
activities which cannot be a subject matter of a legally binding contract,,
The CIT Act exempts certain types of income from tax, e.g.:
income from non-refundable assistance resources received by taxpayers from governments of
foreign countries, international organizations or international financial institutions etc.,
income from grants, subventions, subsidiary payments and other gratuitous performances received
to cover costs or to refund expenses incurred in connection with receipt,
direct payments applied within the Common Agricultural Policy of the European Union,
income of taxpayers (not apply to State enterprises, cooperatives and companies) whose statutory
aim is: scientific activity, technical research, supporting public projects in building roads and
telecommunication networks and water supply system in rural areas, charity, health protection and
social aid, religious practice in the part designed for such purposes,
income of churches legal persons or incomes of companies whose sole shareholders is a church
legal person generated from statutory non-economic activity and from other activities in part used
for the purposes of inter alia religious worship, science, culture, charity, educational.
income from school activity in part designed
The corporate income tax is the central government tax but revenue from this tax is split between
central government and local governments.
The corporate incomes are taxed with flat tax rate. In recent years, the tax rate base has been gradually
reduced from 40% in late 90s to 19% in 2004, which was effective until 2012. For 2013, the CIT rate
increased to 23%. Since 2014, the rate was reduced to 22% as an accompanying measure of introduction of
the minimum corporate tax.
The minimum tax, called tax license, has been introduced at three levels: EUR 480 for small
corporations, not registered to VAT; EUR 960 for small corporations, registered to VAT and EUR 1,280
for large companies (turnover over EUR 500,000). These minimum amounts have to be paid if the tax
calculated on the actual taxable income is lower. The minimum tax is paid as the ordinary CIT, i.e. when
tax return is filed. The difference between the minimum tax and the tax calculated based on taxable income
may be carried forward and deducted from tax lia