China – Czech Republic Tax Treaty
The China-Czech Republic tax treaty caps withholding on dividends at 10% for portfolio investors and 5% for qualifying direct investment, and interest at 7%. Royalties are taxed at a uniform 10% across all categories. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 47 active treaties in China's network and one of 34 in Czech Republic's. The general dividend rate of 10% compares to a median of 10% across China's network and 15% across Czech Republic's.
Verified data
Financial Administration Tax Treaties (financnisprava.cz) (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12).)
Withholding Rate Summary
Source: Czech Republic Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Czech Republic) |
|---|---|---|
| Dividends (general) Portfolio investors | 10%saves 5% | 15% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 5%saves 10% | 15% |
| Interest Bank interest, bonds, loans | 7%saves 8% | 15% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 10% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Czech Republic)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 10% applies to portfolio investors. A reduced rate of 5% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 15%.
Source: Czech Republic Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 7% withholding under this treaty, compared to the 15% statutory rate. This represents a 8% reduction from the statutory rate.
Source: Czech Republic Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 10% to 10%.
Source: Czech Republic Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Czech Republic Treaty Reference
Comparative Context
🇨🇳China's Network
Among China's 47 active treaty partners, the 10% general dividend rate ranks 8th (median: 10%).
| Partner | Rate |
|---|---|
| Switzerland | 10% |
| Chile | 10% |
| Cyprus | 10% |
| Czech Republic (this treaty) | 10% |
| Denmark | 10% |
| Egypt | 10% |
| Spain | 10% |
🇨🇿Czech Republic's Network
Among Czech Republic's 34 active treaty partners, the 10% general dividend rate ranks 3rd (median: 15%).
| Partner | Rate |
|---|---|
| Poland | 5% |
| Austria | 10% |
| China (this treaty) | 10% |
| Cyprus | 10% |
| France | 10% |
| India | 10% |