Czech Republic

Workforce Payments Guide Czech Republic

Last updated: Dec 18, 2023

Czech Koruna (CZK)
Payroll Frequency
Fiscal Year
1 January - 31 December
Employer Taxes
Central Bank
Czech National Bank
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3rd Party Payments

Authority  Payment Frequency  Due Date  Payment Method 
Corporate Income Tax  Annually  1 April (or 1 May if filed electronically)  Electronic transfer 
Individual Income Tax  Annually  1 April (or 1 May if filed electronically)  Electronic transfer 
VAT  Monthly  25 days after the taxable period  Electronic transfer 
Social Security  Monthly  20th day of the following calendar month  Electronic transfer 

Payments Coverage

Papaya Global fully support payments in the Czech Republic

Contractor Payments

Papaya Global supports payments to contractors in the Czech Republic. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. it is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

Payroll Frequency



IBAN Example Czech Republic


IBAN in print CZ75 5051 8869 7733 2179 8341
Country Code CZ
Digit Code 75
Bank Code 5051
Bank Account Number 8869773321798341


Czech follows the AML Act and the 4th and 5th AML D=directives and involves the identification and verification of the customer’s identity. This is to prevent misuse of the financial system for money laundering and terrorist financing. It’s used by crypto exchange offices and ICO token issuers.

The identification requires investor’s personal data such as name, surname, personal identification number, date of birth, place of birth, sex, residence, and citizenship, as well as a phone number, address for electronic post delivery, and data on employment or employer.

For legal entities, it requires the company name, registered seat, identification number, and identification data on persons who are members of the company’s statutory bodies. For trust funds and other institutions without a legal personality, the title and identification data of the administrator or a similar person is needed.

The identification can be performed by a public notary or contact place of public service, or it can be taken over under certain provisions, which allows identification without physical presence. After the acquisition of this data, token issuers are required to verify the information with a qualified service provider and must not doubt about the client’s identity.

The AML Act also provides a general obligation on commercial companies, trust funds, associations, public legal entities, foundations, and institutes to disclose their UBOs to the court which keeps the relevant register. However, the UBO registry is not publicly accessible.

The legislation allows for the digital onboarding of customers, provided that the requirements for customer identification and customer verification under the AML Act are observed.

The main obligations of the reporting entities include customer due diligence (CDD), the collection of information and documents and their storage, an assessment of the risk of money laundering and terrorist financing, and the disclosure of information on suspicious operations, transactions and customers. The AML Act further specifies requirements for a system of internal principles, risk assessment, staff training and information obligation.

Banking Regulations

Cross-border workforce payments in the Czech Republic are subject to several regulations and laws, including:

Act No. 370/2017 Coll. on Payment system: This act regulates the payment systems in the Czech Republic.

Regulation (EU) 2021/1230 of the European Parliament and of the Council of 14 July 2021 on cross-border payments in the Union: This EU regulation applies to all member states, including the Czech Republic, and specifically addresses cross-border payments.

Commission Implementing Regulation (EU) 2019/410 of 29 November 2018: This regulation lays down implementing technical standards with regard to the details and structure of the information to be notified, in the field of payment services.

Regulation (EU) No 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of funds: This EU regulation, which repeals Regulation (EC) No 1781/2006, sets out the requirements for information that must accompany transfers of funds, in any currency, sent or received by payment service providers established in the EU.

Act No. 254/2004 Coll. on Restriction of Cash Payments: This act restricts cash payments in certain situations, which could impact workforce payments.

These laws and regulations are designed to ensure the security and transparency of cross-border payments. However, they can also create complexities for businesses and individuals making cross-border payments.

Bank Account Opening

The requirements to open a company bank account include setting up a new company with registered capital exceeding CZK 20,000. The registered capital must be paid into the bank account, and then the account credited with the minimum registered capital of the company. If the registered capital of a company is under CZK 20,000, such capital must be deposited with a deposit administrator.

Once the registered capital has been paid and trade licences have been obtained, the company can apply for registration in the Commercial Register. Additionally, the company director must be present in person to sign the application at the bank and register their identity documents. The legal entity must provide constituent documents and a copy of the director’s passport. Any documents in English need to be submitted with a translation.

The bank may require additional documents such as contracts with Czech partners, an office or warehouse lease agreement, and work contracts if there are employees. A bank application form must also be filled out.

For citizens of countries outside of the EU, a residence permit or visa and proof of address in the Czech Republic might be required, in addition to the ID documents. Some banks might require an initial deposit that will serve as a first payment into the bank account, with the amounts varying from bank to bank.

The entire process of setting up a limited liability company, which includes opening a bank account, takes around one month, but this is always dependent on the clients’ availability when preparing documentation, and the speed of registration in the Commercial Register by the court. After visiting the bank to present identity documents and discuss additional details, the card will be sent by mail, usually within 1-2 weeks.

International Banks

1. UniCredit Bank Czech Republic and Slovakia, a.s. (Italy)

2. Raiffeisenbank a.s. (Austria)

3. Bank of China (CEE) Ltd. Prague Branch

4. Bank of Communications Co., Ltd., Prague Branch

5. BNP Paribas Personal Finance SA

6. BNP Paribas S.A., pobočka Česká republika

7. Citibank Europe plc

8. COMMERZBANK AG, pobočka Praha

9. Deutsche Bank AG Filiale Prag

10. HSBC Continental Europe, Czech Republic

11. Industrial and Commercial Bank of China Limited, Prague Branch

12. ING Bank NV

13. mBank S.A.

14. Oberbank AG pobočka Česká republika


Local Major Banks

The major local banks operating in the country are:

  • Air Bank a.s.
  • Artesa, spořitelní družstvo
  • Banka CREDITAS a.s.
  • Česká exportní banka, a.s.
  • České spořitelní družstvo
  • Československá obchodní banka, a. s.
  • Citfin, spořitelní družstvo
  • ČSOB Stavební spořitelna, a.s.
  • Fio banka, a.s.
  • Hypoteční banka, a.s.
  • J&T BANKA, a.s.
  • Komerční banka, a.s.
  • Max banka a.s.
  • Metropolitní spořitelní družstvo
  • Modrá pyramida stavební spořitelna, a.s.
  • MONETA Stavební Spořitelna, a.s.
  • Národní rozvojová banka, a.s.
  • NEY spořitelní družstvo
  • Partners Banka, a.s.
  • Peněžní dům, spořitelní družstvo
  • Stavební spořitelna České spořitelny
  • Wüstenrot – stavební spořitelna
  • Všeobecná úverová banka
  • Českomoravská stavební spořitelna
  • Oberbank AG
  • GE Money Bank
  • PPF banka
  • Raiffeisenbank, a.s.
  • HYPO stavební spořitelna

Payment Tools

The B2C payment tools available in the Czech Republic include:

1. Card card payments: These include all major debit and credit card brands such as Mastercard, Visa, American Express, and Diners Club.

2. Online bank payments and standard bank transfers: These include online bank transfers, Internet Banking Links to several local banks, wire transfers, and PaySec.

3. SMS payments: This is a flexible payment method that allows customers to pay via text message.

4. E-wallet systems: These include digital wallets such as Google Pay, Apple Pay, and PayPal.

5. Coupons: This payment method involves the use of vouchers or coupons that can be redeemed for goods or services.

6. Bitcoin: This is a digital or virtual currency that uses peer-to-peer technology to facilitate instant payments.

7. Specific payment tools and platforms: These include Braintree, 2Checkout, Checkout,, Adyen, Revolut, Monei, Rapyd, and inai. These platforms support a variety of payment methods and offer features such as customizable checkout pages and easy integration options.


In the Czech Republic, it is technically possible to pay employees with cryptocurrencies. However, any payment made to an employee in cryptocurrencies is considered a payout in kind and requires the employee’s consent. There is also a limit on the amount of such payout.

Cryptocurrencies are not subject to the law on payment systems and they’re not an official means of payment, but they can be used in transactions. Cryptocurrency-related businesses must register their operations with the Czech government under stricter Anti-Money Laundering (AML) regulations and follow all relevant EU rules, otherwise, they may face fines.

Regarding taxation, companies are required to pay taxes to the Social and Health Funds and Corporate Income Tax on income earned in the Czech Republic, even when using cryptocurrencies for business purposes. Taxation of cryptocurrency income is governed by the same rules as when paying with conventional money. It is important for companies to navigate these regulations carefully to avoid increased taxation risks and ensure compliance with employment taxation channels.

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