He will appear at the City of Westminster Magistrates' Court on February 11.
In a statement, the CPS said: "Milan Mandaric, the former chairman of Portsmouth Football Club, has today been charged with two counts of cheating the public revenue following a decision by the CPS Revenue and Customs Division.
"Following a thorough investigation by HM Revenue and Customs and the City of London Police, the CPS decided there was sufficient evidence and it was in the public interest to charge Mr Mandaric with two counts of cheating the public revenue.
"The charges are in relation to the payment of 295,000 dollars from Mr Mandaric to another via a bank account in Monaco, evading the tax and national insurance contributions due between April 1 2002 and November 28 2007.
"Mr Mandaric will appear at the City of Westminster Magistrates' Court on February 11."