Overview of the Czech Republic
2005-09-26 17:56 Article Source:
Article Type: Excerpt Content Category:
Czech Republic Basics Introduction to the country
The name of the country is Czech Republic
Area 78,864 square kilometers
Population 10.23 million
Capital Prague (Prague)
Currency Czech crown (CK), 1 crown = 100 harles
1 US dollar = 23.94 crowns (exchange rate from April to June 2005)
Brief History The Czech Republic is a Slavic nation. From the beginning of the 17th century, the Czech nation was ruled by the Habsburg dynasty for 300 years. After the First World War, the Austro-Hungarian Empire collapsed, and the Czech Republic gained independence in 1918 and established the Czechoslovak Republic. During the Second World War, the Czech Republic was occupied by Nazi Germany and later liberated by the Soviet Red Army. In 1960 A new constitution was adopted in 2001, and the country's name was changed to the Socialist Republic of Czechoslovakia. A federal system was implemented in 1969, consisting of two national republics, the Czech Republic and Slovakia, which enjoy equal status. After the 1990 election, the country was renamed the Commonwealth of Czech and Slovak Republic. On January 1, 1993, the former Commonwealth of the Czech Republic and Slovakia dissolved and the Czech Republic became an independent sovereign state.
The current president of the Czech Republic is Vaclav Klaus.
Natural resources Czech Republic is rich in forest resources, covering about 1/3 of the country's total area. The main tree species include spruce, fir, oak and beech. The main mineral reserves include coal, uranium, clay, glass sand, etc., of which hard coal reserves are 6.5 billion tons, ranking fifth in Europe.
Economic Situation Czechoslovakia began to transition from a planned economy to a market economy in 1991. The economy suffered a severe recession. After more than ten years of hard work, the market economy framework has been basically established. On January 1, 1993, the Czech Republic became an independent republic. Since 1994, the Czech economy has gradually improved, with GDP growing by 4% that year. In 1995 and 1996, the economic transition further deepened and privatization was basically completed. Economic legislation has been continuously improved and improved, and various sectors of the national economy have begun to recover to varying degrees.
In 1995, GDP increased by 4.8% year-on-year. In 1996, calculated at constant prices in 1994, it was 1.386 billion kronor (approximately 51.3 billion U.S. dollars), an increase of 4.8% over the previous year, and the per capita GDP was 5,051 U.S. dollars. Compared with the same period of the previous year in 1996, the gross industrial production increased by 6.8%, and the Czech foreign exchange reserves increased, reaching US$16.1 billion by the end of 1996. Before 1998, the Czech unemployment rate and inflation rate remained at low levels. In 1996, the unemployment rate was 3.5% and the inflation rate was 8.8%. In 1999, GDP increased by 1.2% year-on-year, the unemployment rate increased to 9.37%, and the inflation rate decreased to 2.1%. In 2001, Czech economic growth rate was 2.6%. In 2002, foreign exchange reserves were US$24.475 billion; external debt was US$26.281 billion; GDP increased by 1.5% year-on-year to US$69.868 billion, and per capita GDP was US$6788.6; the unemployment rate was 9.8%, and the inflation rate was 1.8%. In 2003, foreign exchange reserves were US$26.795 billion; external debt was US$34.861 billion; GDP increased by 3.1% year-on-year to US$76.906 billion, and per capita GDP was US$7,538; the unemployment rate was 10.3%, and the inflation rate was 0.1%.
In 2004, the economy grew by 4.4%, GDP was US$107 billion, total foreign debt was US$45.3 billion, and the average salary was approximately US$659. The Czech Republic’s foreign exchange reserves are US$24.8 billion, the unemployment rate is 9.5%, and the inflation rate reaches 2.8%.
Table of changes in Czech foreign debt from 1994 to 2003 (unit: billion US dollars)
Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Amount 106.94 165.49 208.45 213.52 240.47 226.13 213.72 223.74 262.81 348.61
Starting from October 1, 1995, the Czech koruna became freely convertible under the current account.
1. Industry. The Czech industrial structure is based on the output value of large and medium-sized enterprises (enterprises with more than 100 employees). The following is the proportion of each industry in the entire industry:
The mining of energy raw materials accounts for 6.2% of the entire industry, the mining of other mineral raw materials accounts for 0.3%, the manufacturing and transportation of electricity, natural gas and water accounts for 7.5%. Processing industry accounts for 86%. Steel and steel product processing accounted for 19.04%, food processing accounted for 17.58%, vehicle manufacturing accounted for 10.14%, machinery and equipment accounted for 8.78%, chemicals and pharmaceuticals accounted for 6.77%, coal and crude oil processing accounted for 6.14%, electrical appliances and optical instruments accounted for 5.85% , textiles and clothing industry accounted for 5.63%, paper making, printing and publishing industry accounted for 5.40%, glass, ceramics and building materials accounted for 5.32%, rubber and plastic industry accounted for 2.89%, wood processing industry accounted for 1.73%, leather processing accounted for 1.50% and Other unclassified processed industrial products accounted for 3.24%. The Czech machinery manufacturing industry has certain competitiveness in the world. According to research by relevant EU institutions, the competitiveness of the Czech machinery manufacturing industry ranks among the top 5 in Europe and the top 15 in the world. Among various industrial sectors, the textile industry, aviation, automobile, environmental protection and food processing industries are more prominent.
2. Travel. The Czech Republic has very rich tourism resources and is known as the "Garden of Central Europe". The Czech Republic is a mountainous, landlocked country, with forest coverage accounting for 1/3 of the country's area, and lakes and fish ponds scattered throughout the country. The Czech architectural style is unique and covers almost all architectural styles in various historical periods in Europe. Gothic architecture is especially the most famous. There are castles of various eras built on mountains and rivers all over the country, most of which are well preserved. Prague, the capital, is known as "Golden Prague" and "City of One Hundred Towers".
In 2003, there were more than 94 million foreign tourists, the tourism industry’s foreign exchange income was 3.55 billion US dollars, the tourism industry’s contribution to the gross national product was 4.2%, and its contribution to exports was 7.3%. %.
3. infrastructure. ① Railway transportation: The Czech Republic has a strong railway transportation capacity, with 9,430 kilometers of railway lines, of which 7,402 kilometers are single tracks, 1,933 kilometers are double tracks or multiple lines, and there are 94 kilometers of narrow gauge railways. There are 620 kilometers of railway lines with a speed of 120 kilometers per hour. 2,743 kilometers of railway lines have been electrified, accounting for 29.1% of the total length of railway lines. Electrified railways are suitable for trains with a speed of 160 kilometers per hour. ②Road transportation: The Czech road system includes 414 kilometers of expressways and 55.086 kilometers of other roads, including 6,159 kilometers of first-class roads, 14,273 kilometers of second-class highways and 34,35 kilometers of third-class highways. ③Air transportation: The main international airports in the Czech Republic include Prague RUZYNE Airport, Brno TURANY Airport, Ostrava Mosnov Airport and Karlovy Vary Airport etc. In addition, the Czech Republic has 6 airports operated by different agencies, 58 airports for domestic passenger transport, 5 non-public airports and 15 helicopter airports for rescue.
Residents’ living habits. Czechs are generally highly educated and musically literate. There is a folk proverb that “every Czech is a musician”. In foreign exchanges, they pay attention to etiquette, dress, and status equality; They pay attention to order in public places, keep quiet, and respect personal privacy; their diet is European style, they consume a lot of meat products, and they like to drink beer. Per capita beer consumption ranks first in the world.
Trade Policy
1. The Czech Republic has implemented a trade liberalization policy, abolished state-owned monopoly on foreign trade, liberalized foreign trade management rights, and canceled restrictions on import and export commodities.
According to the Czech Trade Code, as long as enterprises are registered with the court and the Industrial and Commercial Bureau, they have the right to operate foreign trade.
2. The import and export of goods and services are also liberalized, with lower import tariffs and most-favored-nation treatment for the EU and countries that have signed trade agreements with the Czech Republic. Provide GSP treatment to developing countries (including China), zero-tariff import treatment to least developed countries, and no tax on exports.
Only a very small number of products (such as weapons, medicines and narcotic drugs, etc.) have non-tariff import restrictions, that is, a license system. Export licenses are required for goods for which the country has international obligations to restrict exports (such as textiles, steel, etc.).
3. The Czech Republic actively supports the liberalization process of the World Trade Organization, and has signed an Association Agreement with the EU, and signed the China-EU Free Trade Agreement (CEFTA) with Poland, Hungary, Slovakia, and Slovenia. In these agreements, there are more specific provisions on market access for goods and services between member countries.
4． In order to reverse the past over-reliance on the former countries of the Economic Cooperation Council, especially the former Soviet Union, the Czech government has actively developed economic and trade relations with various regions around the world. The center of Czech trade policy is "facing the world and developing diversified trade, focusing on Europe." Since the beginning of the economic transition, the Czech Republic has gradually completed the transformation of the regional structure of trade, that is, from the Eastern market to the Western developed market economy countries. At present, trade with developed Western market economy countries, especially EU countries, accounts for a large share of the Czech Republic's total foreign trade. In 2003, exports to the EU accounted for 69.8% of the Czech Republic's total exports that year, and imports from EU countries accounted for 69.8% of the Czech Republic's total imports that year. 59% of the total.
In addition, after years of negotiations and efforts, ten countries including the Czech Republic officially joined the EU on May 1, 2004. In terms of foreign economic and trade policies, they will implement the EU's unified trade policy and Become part of the EU single market.
Foreign Economic and Trade Relations In 1995, the Czech foreign trade volume was US$37 billion. Since 1998, Czech foreign trade has continued to develop, and the structure of imports and exports has improved, but the deficit has further increased. The total foreign trade volume in 1998 was 1,779.247 billion kronor (approximately 50.84 billion U.S. dollars). The total foreign trade volume in 1999 was 1,927.594 billion kronor (approximately 55.07 billion U.S. dollars), a year-on-year increase of 8.3%, of which exports were 928.865 billion kronor (approximately 26.54 billion U.S. dollars), a year-on-year increase of 9.2%; imports were 998.729 billion kronor (approximately 26.54 billion U.S. dollars), a year-on-year increase of 9.2%. totaled US$28.54 billion), a year-on-year increase of 9.3%. In 2000, the total foreign trade volume of the Czech Republic was 2,363 billion crowns (approximately $61.1 billion), a year-on-year increase of 10.9%, of which exports were 1,121.1 billion crowns (approximately $29 billion), a year-on-year increase of 9%; imports were 1,241.9 billion crowns ( (approximately US$32.1 billion), a year-on-year increase of 12%. In 2001, the total foreign trade volume of the Czech Republic was 2,653.7 billion kronor (approximately 69.8 billion U.S. dollars), a year-on-year increase of 14%; of which the export volume was 1,268.1 billion kronor (approximately 33.4 billion U.S. dollars), a year-on-year increase of 15%; the import volume was 1,385.6 billion kronor (approximately 33.4 billion U.S. dollars), an increase of 15% year-on-year (approximately US$36.5 billion), a year-on-year increase of 13.7%. In 2002, the total foreign trade volume of the Czech Republic was 2.5805 billion kronor (approximately 79.159 billion U.S. dollars), a year-on-year increase of 13.4%; of which the export volume was 1.2548 billion kronor (approximately 38.402 billion U.S. dollars), a year-on-year increase of 15%; the import volume was 1.3257 billion kronor (approximately 38.402 billion U.S. dollars), a year-on-year increase of 15% (approximately US$40.757 billion), a year-on-year increase of 11.7%. In 2003, the total foreign trade volume of the Czech Republic was 2,811.7 billion kronor (approximately 99.996 billion U.S. dollars), a year-on-year increase of 26.3%; of which the export volume was 1,370.9 billion kronor (approximately 48.74 billion U.S. dollars), a year-on-year increase of 27%; the import volume was 1,440.7 billion kronor ( (approximately US$51.256 billion), a year-on-year increase of 25.7%.
In Czech foreign trade, trade with developed countries plays an important role. In terms of exports in 2003, Czech exports to developed market economy countries amounted to US$36.9 billion, accounting for 75.7% of Czech’s total exports, of which exports to the EU accounted for 69.8% of Czech’s total exports; Czech exports to developing countries It was US$1.42 billion, accounting for 2.8% of the Czech Republic’s total exports.
Exports to European countries with economies in transition, including the CIS, were US$9.02 billion, accounting for 18.5% of the Czech Republic’s total exports; exports to other countries with economies in transition and state-owned economies, including China, were US$277 million, accounting for 18.5% of the Czech Republic’s total exports. 0.6% of the Czech Republic’s total exports; in terms of imports, imports from economically developed countries were US$35.15 billion, accounting for 68.5% of the Czech Republic’s total imports, of which imports from EU countries were US$30.38 billion, accounting for 30% of the Czech Republic’s total imports. 59%; imports from developing countries were US$3.04 billion, accounting for 7.3% of the Czech Republic’s total imports; imports from European countries in economic transition, including the CIS, were US$6.49 billion, accounting for 12.7% of the Czech Republic’s total imports. ; Imports from other countries with economies in transition and state-owned economies, including China, amounted to US$2.74 billion, accounting for 5.3% of the Czech Republic’s total imports.
In 2004, the total foreign trade import and export volume of the Czech Republic was US$134.5 billion, a year-on-year increase of 33.2%, of which exports were US$66.8 billion, a year-on-year increase of 23.8%, and imports were US$67.7 billion, a year-on-year increase of 19.2%. In Czech foreign trade, Czech trade with developed countries still occupies a major position. From January to December 2004, from the perspective of exports, Czech exports to developed market economy countries accounted for 91.6% of Czech exports, of which exports to the 25 EU countries accounted for 85.9%; exports to the 15 EU countries accounted for 68.1%, and Czech exports to the development China's exports account for 3% of Czech exports. Exports to European countries in economic transition, including the CIS, accounted for 4.7% of the Czech Republic's total exports; exports to other countries in economic transition and state-owned economies, including China, accounted for 2.3% of the Czech Republic's total exports; from the perspective of imports , imports from economically developed countries accounted for 81.8% of the total Czech imports, of which imports from the 25 EU countries accounted for 71.8% of the total Czech imports; imports from the 15 EU countries accounted for 58.7%; imports from developing countries accounted for the total Czech imports 6.3%; imports from European countries with economies in transition, including the CIS, accounted for 6.4% of the Czech Republic’s total imports; imports from other countries with economies in transition and state-owned economies, including China, accounted for 4.9% of the Czech Republic’s total imports.
The top ten trading partners of the Czech Republic in 2004 were: Germany, Slovakia, Poland, Austria, Italy, France, the United Kingdom, the Netherlands, China, and Russia.
Czech imports mainly include: oil and natural gas, computers, machinery and transportation equipment, pharmaceutical products and equipment, telephones, computers and auxiliary equipment, communication equipment, iron ore, household appliances, etc.
The main export commodities include: machinery and transportation equipment, steel, glass products, wood, tires, furniture, etc.
In December 1992, the Czech Republic, Poland, Hungary and Slovakia signed the Central European Free Trade Agreement (CEFTA) in Krakow, Poland. In January 1996 and July 1997, Slovenia and Romania were absorbed into the Agreement respectively. member states. The agreement aims to gradually reduce tariff rates. Eliminate non-tariff barriers to promote trade liberalization between contracting parties and ultimately establish a free trade area between contracting parties.
On December 16, 1991, the former Czech Federation and the European Union signed an Association Agreement and a provisional agreement on trade issues, which came into effect on March 1, 1992.
Since the Association Agreement came into effect on March 1, 1992, the EU has eliminated tariffs and quotas on 70% of Czech goods exported to the EU, and the remaining 30% will be liberalized in 5 to 6 years. 20% to 25% of the EU’s exports will be liberalized, and the rest will be completed in 5 to 9 years.
The Czech Ministry of Industry and Trade is responsible for the foreign trade and industry of the Czech Republic. The Ministry has five divisions: Regulations, Budget and Management Division, Economic Policy and Business Operations Division, Industry and Construction Division, Energy, Power and Metallurgy Division, Foreign Economic Relations and European Integration Division, each division is headed by a deputy minister. There are 35 divisions under 5 branches.
In addition, the Ministry of Industry and Trade has institutions such as the Czech Investment Agency (responsible for attracting foreign investment) and the Czech Trade Agency (responsible for promoting exports).
Import and export commodity inspection
1. exit.
Goods that do not involve export quotas or licenses can be exported freely without any commodity inspection. Only when foreign importers require Czech exporters to issue commodity inspection certificates for relevant products, they need to go through export commodity inspection procedures. The main Czech agency responsible for export inspection and issuance of commodity inspection certificates is INSPEKTA Co., Ltd.
Inspecta is mainly responsible for inspecting the quality, quantity, and technical parameters of exported goods, conducting chemical analysis of products, and issuing technical reports. The ISO9000 quality standard system is mainly used in inspections.
2. import. The Czech Republic has a strict inspection system for the import of goods. Many goods must have their samples graded, reviewed and issued a commodity inspection certificate by the National Inspection Institute of the State Bureau of Standards and Metrology before they can enter the Czech market.
The major categories of commodities that need to be inspected by the inspection center are:
Steel, chemical products, hardware, electricians, valves and fittings, home appliances, medical equipment, various mechanical products, electrical equipment, Building materials, labor protection products, office equipment, toys, grain, oil and food, native livestock products, tobacco and medicines, etc.
The main commodity inspection institutes are:
Electrical Products Inspection Institute, Mechanical Products Inspection Institute, Agricultural and Food Inspection Institute, Construction Technology Inspection Institute, National Agricultural, Food and Forestry Machinery Inspection Institute , National Drug Inspection Institute, Chemical Fiber Inspection Institute, Motor Vehicle Inspection Institute, Audio and Video Recording Inspection Institute, Textile Inspection Institute, etc.
3. Czech Trade Inspection Service. The Bureau is a national agency affiliated with the Czech Ministry of Industry and Trade. Its main function is to supervise and inspect products and services and other business activities in the domestic market.
The Trade Inspection Bureau takes punitive measures such as fines or even bans on goods or services that do not meet the regulations.
The certificate of origin stipulates that processing trade in the Czech Republic must be carried out. The added value of products processed in the Czech Republic must reach more than 60% before they can be regarded as Czech products. Obtain the Czech certificate of origin, that is, the "European 1 format" (EUR1 ).
Important fairs and exhibitions The largest exhibition organization in the Czech Republic is Brno Fair and Exhibition Joint Stock Company, which organizes dozens of international fairs and exhibitions at the Brno Exhibition Center every year. Among them, the most influential and large ones are: International Machinery Expo, International Consumer Goods Expo, International Food Expo, International Financial Expo, International Automobile Expo, etc. Our country has participated in machinery and consumer goods expositions many times. In addition, Prague Exhibition Company is also a well-known exhibition organization in the Czech Republic.
The contact address of the relevant organization is:
1. Brno Exhibition Company Bvv, a. s． (Brno Trade Fairs and Exhibition Co., Ltd.)
V?stavi?tě 1, 64700 Brno, Czech Republic
Tel: 00420 541 151 111
Fax: 00420 541 153 070
E-mail: info@bvv.cz
Website: www.bvv.cz
2. Prague Exhibition Company (INCHEBA PRAHA spol. s r. o.)
Areál V?stavi?tě Praha, P. O. BOX 555
170 90 V?stavi?tě Praha 7 - Hole?ovice
Tel: 00420 220 103 111
Website: http://www.incheba.cz/
Investment environment The Czech government attaches great importance to attracting foreign investment. In April 1998, the Czech government promulgated and implemented preferential investment policies. According to the negotiation regulations between the Czech Republic and the EU, after joining the EU, the preferential investment policies implemented by the Czech Republic in 1998 and continuously improved can still be retained.
The Czech government has simplified the approval process for enterprise registration and ensures the free remittance of corporate profits and capital based on investment protection agreements signed with other countries. The free convertibility of the krona ensures the foreign exchange balance of enterprises and further improves the investment environment. Improvement, legislation gradually improved.
Due to the good economic development of the Czech Republic in recent years and the Czech government's introduction of a series of measures to attract foreign investment, the amount of foreign investment attracted by the Czech Republic has ranked first among Central and Eastern European countries for several consecutive years.
In order to better introduce and manage foreign investment, the Czech government has established the Czech Investment Agency within the Ministry of Industry and Trade, which is directly led by the minister. In addition to providing "national treatment" to foreign-invested enterprises, the central and local governments also provide preferential treatment and subsidies in taxation, land, employee training, etc.
According to the Czech Statistics Bureau, the Czech Republic attracted 40.987 billion euros in foreign direct investment from 1993 to 2004. The top ten investing countries are: Germany (30%), the Netherlands (15%), Austria (10%), France (9%), United States (7%), Switzerland (6%), Belgium (4%), United Kingdom (4%), Japan (4%) and Sweden (1%); Manufacturing The main investment industries are: machinery and equipment industry (5.952 billion euros), basic metals and metal products (2.07 billion euros), refined oil and chemical industry (2.051 billion euros), food and tobacco (1.631 billion euros). The main non-manufacturing investment industries are: financial industry (8.048 billion euros), trade, hotel and catering industry (5.46 billion US dollars), transportation, storage and communication industry (5.003 billion US dollars) and real estate and commercial activities industry (3.284 billion US dollars) .
1. Investment risk level in the Czech Republic. In 2002, the internationally renowned Standard & Poor's rated the Czech Republic's long-term credit rating as A+ and its short-term credit rating as A1 based on the Czech national currency.
2. Investment protection. The Czech Republic has signed investment protection agreements with more than 30 countries in the world, including China. These agreements ensure that foreign investments in the Czech Republic will not be harmed. And it has signed double taxation agreements with most countries in the world.
3. Foreign Exchange Management Policy
The Czech government enacted the Foreign Exchange Law (Decree No. 219 of 1995) in 1995, and the Foreign Exchange Law came into effect on October 1 of the same year.
The Foreign Exchange Act removes some restrictions on payments for goods, payments for goods and transfers. Foreign exchange transactions involve transfers and payments. With the continuous development of the economy, Czech domestic foreign exchange transactions have been liberalized, and Czech currencies are freely convertible domestically. Domestic and foreign legal persons and natural persons can freely remit foreign exchange into or out of the Czech Republic and freely exchange foreign currency with krona. Foreign investors can invest freely in the Czech Republic and can deposit and withdraw money from krona accounts or foreign exchange accounts. In 2001, the Czech government revised the Foreign Exchange Law. In addition to certain restrictions on foreign natural persons’ investment in Czech real estate, the new Foreign Exchange Law eliminated regulations related to capital flows and foreign exchange transactions.
In the Czech Republic, only foreign legal persons or natural persons who have obtained a long-term residence permit can engage in foreign exchange transactions. The Foreign Exchange Transaction Law guarantees the safety of the remittance of capital and profits, and regulates the remittance of foreign exchange and the opening of foreign exchange. There are no restrictions on the account.
To engage in foreign exchange transactions, foreign currency exchange or other financial services, you must obtain the corresponding license. In terms of foreign exchange management, the Ministry of Finance and the Central Bank, as national institutions, are responsible for foreign exchange management. The Ministry of Finance manages national institutions, national funds, etc., and the Central Bank manages other domestic natural persons and foreigners. You can apply for a foreign exchange trading license from the Central Bank. When issuing it, the central bank generally examines the applicant's technical, personnel and financial conditions for engaging in foreign exchange transactions, the professional capabilities and non-criminal status of relevant managers and traders, and the non-criminal status of the company owner. Situation etc. The license stipulates the business scope, conditions and relevant responsibilities of the license holder, etc. It cannot exceed the business scope, such as buying and selling foreign securities, etc. At the same time, the Central Bank also stipulates the types of foreign exchange transactions that legal persons can engage in, as well as the minimum capital for legal persons to engage in foreign exchange transactions. The Foreign Exchange Law also stipulates that all units or individuals engaged in foreign exchange transactions and exchange business must open a special deposit margin account in a domestic bank in the Czech Republic and deposit a margin according to a certain proportion of the capital.
At present, the Czech Republic’s restrictions on the free flow of foreign capital within the Czech Republic only involve some special areas, such as civil aviation and the privatization of state-owned land. In addition, legal foreign capital enters and invests in the Czech Republic. There are no restrictions on the remittance of profits, and investors' interests are protected by investment protection regulations.
According to legal provisions, when carrying cash in domestic and foreign currencies, traveler's checks and other financial checks that can be converted into cash with a total value exceeding US$9,804 when entering or exiting Czech customs, you must declare to the customs or present relevant certificates.
Loans: Foreign-funded enterprises can apply for loans from Czech banks or branches of foreign-funded banks established in the Czech Republic.
The Czech Republic has joined the European Union in May 2004, and the current Czech government expects that the Czech Republic will officially join the Eurozone in 2010.
In terms of taxation, the Czech Republic has reformed taxation since 1993, implemented value-added tax and unified income tax. According to the principle of "national treatment", foreign enterprises do not enjoy special taxation benefits. policy. For enterprises, there are mainly the following types of taxes:
1. VAT. Czech tax law stipulates that any company whose turnover exceeds 1 million crowns in a year must register with the tax department as a value-added tax taxpayer.
After joining the EU on May 1, 2004, the value-added tax rate was adjusted to two levels: 5% and 19%. Only a few goods and services are included in the 5% value-added tax scope, such as agricultural products, food, medicines, books, newspapers, heating, etc. The value-added tax for some goods and services is 19%, such as restaurants, hotels, tourism, trade, intermediary services, repair and maintenance of vehicles and tools, electricity, solid fuels, natural gas, telecommunications and hairdressing industries. The Czech Republic exempts exported goods from VAT.
2. Excise tax. There are five categories of taxable objects, such as hydrocarbon fuels, hydrocarbon lubricants, spirits, beer, wine and tobacco products. The consumption tax applies to specially specified goods imported or produced in the Czech Republic, and the taxpayers produce or import these products in the Czech Republic. Legal person or individual. Consumption tax is levied in a single link, mainly in the production link, and is generally levied on a quantitative basis. In recent years, almost all consumption taxes have been increased to varying degrees.
3. Corporate income tax. Currently, the basic corporate income tax rate in the Czech Republic is 26%, which will be further reduced to 24% in 2006. Business income and asset transfer income are taxable.
4． Personal income tax. Divided into two categories: residents and non-residents. Resident taxpayers, including individuals with permanent residence or individuals who reside in the Czech Republic for more than 183 days in a calendar year, are required to pay personal income tax, while non-resident taxpayers are taxed only on income obtained in the Czech Republic, based on the annual income. Different tax rates range from 15% to 32%.
5． Social and medical health insurance. Employees' social and health insurance premiums are 12.5% ??of their wages, and employers must pay an additional 35% of all employees' wages to the Czech Social and Health Insurance Agency. These include health insurance, where the employer pays 9% and employees pay 4.5%; pension insurance, where the employer pays 21.5% and employees pay 6.5%; unemployment insurance, where the employer pays 1.2% and employees pay 0.4%; and sickness and other insurance, where the employer pays 3.3% , employees pay 1.1%.
Procedures for registering a company Czech law allows foreigners to engage in various business activities in Czech law and enjoy the same treatment as domestic companies. Foreigners can establish sole proprietorships, joint ventures, or join existing Czech companies. There are no upper limits on foreign investment.
The Czech Commercial Code stipulates that several methods can be used to engage in trade operations and other activities in the Czech Republic:
Limited liability company (Czech abbreviation s.r.o, the same below), joint-stock company (a.s. ), joint venture (v.o.s), limited partnership (k.s), establishment of a branch or representative office. The most commonly used methods are limited liability companies and joint-stock companies. The minimum registered capital required for the establishment of a limited liability company is 200,000 crowns and 2 million crowns for a joint-stock company.
Foreigners applying to set up a joint venture or company in the Czech Republic must meet the following conditions: 1. The legal person, person in charge or board member establishing a company in the Czech Republic must obtain a long-term residence permit in the Czech Republic; 2. Be at least 18 years old ; 3. No criminal certificate; 4. The legal person or representative must be proven to have a certain level of Czech language.
Then follow the steps below:
1. Site selection and company name establishment. Select an office address, establish the company name and company type.
2. Prepare documents. Draft various documents required for applying for a company in Czech, such as: application form, articles of association, cooperation agreement, etc.
The content includes the company's name, location, legal person or legal representative, registered capital, credit certificate, business scope, rights and obligations of the company's sponsors, etc.
3. Documents and passport notarization. After the above documents are signed by all the promoters of the company, they are sent to the notary office where the office is located for notarization. The passport must also be notarized.
4. Open a bank account and deposit registered capital. When opening a bank account, you need to present a complete set of application documents for company establishment to the bank and deposit the registered capital. After receiving the deposit, the bank issues proof of the arrival of the funds.
5. Industrial and commercial registration. Submit all the above documents to the Industrial and Commercial Bureau where the office is located to apply for a business license.
6. Court Commercial Register. According to the current Czech Commercial Code, all Czech companies must apply for commercial registration. The commercial register is a public register kept by the local commercial court. The company must apply to the local commercial court to include the company in the public register. The application must be signed and notarized by all partners, and submitted to the local commercial court together with relevant documents (see the attached "List of Required Documents" for details) . The Commercial Court will issue a business registration document to the applicant company within a certain period of time.
The list of required documents is as follows:
(1) Industrial and commercial business license;
(2) Application documents for company establishment;
( 3) Bank receipt certificate of registered capital;
(4) Rent contract for office space;
(5) Approval document of the company’s location by the local competent authority;
(6) Residence permit for persons in charge of foreign enterprises (legal persons, legal representatives, board members) in the Czech Republic;
(7) Documents required by other local commercial courts.
7. Activate bank account. Provide relevant court business registration documents to the account-opening bank, authorize the company to activate the account, and provide the bank with a signature model.
8. Go through tax registration. Complete tax declaration and registration with the tax authorities within 30 days from the date of company registration.
Applying for a visa to the Czech Republic Since June 1, 2001, all types of Chinese passports are required to apply for a visa. The application location is as follows:
Consular Department of the Embassy of the Czech Republic in China:
Ritan Road, Jianwai Ritan Road, Beijing
Tel: 0086 10 6532 6902 Fax: 0086 10 6532 5653
Consulate General of the Czech Republic in Shanghai:
Qihua Building, No. 1375 Huaihai Middle Road, Shanghai
Tel:0086 21 6471 2420
The following documents are required to apply for a visa to the Czech Republic:
1. Visa application form (get it at the processing location);
2. My valid passport with two 2-inch color photos;
3. Invitation letter, a standard invitation letter issued by the Czech Foreign Affairs Police;
4. Copies of passport, green card or resident ID card;
5. If the inviter is a foreign citizen who opens a company in the Czech Republic, he or she needs: company registration documents, copies of passport and green card, and notarized locally notarized. If the inviter is a Czech citizen, a copy of the company's registration document (i.e. business license) or personal ID card must be provided and notarized by a notary public;
6. Confirmed round-trip international travel ticket (i.e. OK ticket).
The statutory time from application to receipt of a short-term visa of less than 90 days is 30 days, and for a visa of more than 90 days, it is 60 days.
To apply for an investment residence permit (i.e. green card) in the Czech Republic and to apply for a long-term residence permit at the relevant Czech Foreign Affairs Police Station, you need to provide the following documents:
1. Long-term residence application form;
2. Valid passport and three 2-inch color photos;
3. Documents for applying for company establishment;
4. The court's "copy of the trade index" (or the court's business registration document);
5. Documentation of residence in Czech Republic;
6. No criminal certificate and copy of birth certificate;
7. Proof of funds (including proof of life);
The above documents must be notarized by a notary public.
Economic and Commercial Counselor's Office of the Embassy in the Czech Republic
September 26, 2005