EUPRO IIIncome tax return by individuals for the previous year (2023)
In general
Income Tax Act No. 586/1992 Coll. regulates terms of taxation in the Czech Republic
Tax period in the Czech Republic is a calendar year.
The taxable income of natural persons is the sum of net income in the categories stipulated according to the following sections of the Income Tax Act:
- § 6) Employment Income – salaries, wages, bonuses, which usually apply at UCT Prague to employed students, researchers and academics
- §7) Income from independent activities - self- employment, business activities, professional services
- §8) Capital income - interests and dividends
- §9) Rental Income - income from lease of immovable property
- §10) Other incomes - income from the sale of securities, sale of property, other incomes
The tax rate 15% is applied to an annual income up to CZK 1 582 812 (monthly income up to CZK 131 901) for the income exceeding this amount a rate 23% is applied.
An Individual is entitled for a tax reliefs and allowances, provided he/she is treated a Czech tax resident. However, a tax resident has a tax liability that applies both to income derived from sources in the Czech Republic and to income derived from sources abroad. He/she can avoid double taxation under the terms of a double taxation treaty, if the treaty between the Czech Republic and respective country is concluded.
Tax Residence (Domicile)
Individuals who have their permanent residence or habitual abode in the Czech Republic are treated as Czech tax residents. An individual has his/her habitual abode in the Czech Republic if he/she is present in the Czech Republic for at least 183 days (in aggregate) in a calendar year (except individuals who stay there for the purposes of studying only or receiving medical treatment).
All other individuals are treated as Czech tax non-residents. Should an individual be also regarded as a tax resident in another country based on the other country’s domestic law, the double tax treaty between the Czech Republic and particular country determines his/her final tax residency status based on gradually applied criteria stipulated in the Article No. 4 of the respective double tax treaty.
The Czech tax non-resident working at a territory of the Czech Republic is liable only to income tax from income derived from the Czech´s sources only however he/she is liable to tax from his/her worldwide income in the country where is treated as a tax resident.
Procedure for applying for a Certificate of Tax Domicile in the Czech Republic
The application and mandatory attachments is submitted to the Tax Office, its territorial office in the place of residence or habitual abode. The issuance of the certificate takes 30 days from the submission of the application.
An individual has to fill in a form that is in a Czech lnguage "Žádost o vydání potvrzení o daňovém domicilu pro fyzické osoby" (Request for Tax Residence Certificate for private individuals) and has to provide following attachments:
- Copy of passport and Residence Permit card
- Copy of Working Contract concluded with the Czech employer (e.g. UCT Prague)
- Copy of the Accommodation contract or Lease agreement for the apartment in the Czech Republic
- Copies of passports and residence permits in the Czech Republic of family members, if they live with you in the Czech Republic.
- Copies of the health insurance cards valid for the Czech Republic
- if required by the relevant Tax office, Certificate of the taxable incomes from dependant activity, the withheld tax advances and tax advantage, issued by the payroll accountant of the employer
- Administrative fee CZK 100 paid to the tax office whre you apply
The application is to be submitted in the Czech language version
Deadlines for Tax Return filing
- An employee who does not have an obligation to file a tax return himself (e.g. he worked for one employer in the tax year only, does not claim tax reliefs and benefits e.g. for a child) can participate in the annual tax settlement provided by the employer. An employee have to fill in, sign and deliver " REQUEST for annual account of prepayments and tax benefits for tax period" to his/her payroll accountant latest by February 17. This method of tax return filing can be used by employees, who have income from employment only.
- Tax return filed by a taxpayer himself must be filed by 1 April (paper form) or by 1 May electronically via a data mailbox or with an electronic signature. A taxpayer, who is an employee must ask his employer´s payroll accountant to issue a Certificate of Taxable Income from dependant activity, the withheld tax advances and tax advantage, that is a mandatory attachment of the Tax return. He has also provide confirmation proving the relevant facts when applying for tax reliefs and benefits, including the Certificate of the Czech tax domicile.
- The deadline can be extended until 1 July if the tax return is prepared and filed by a tax advisor or by an attorney based on a power of attorney.
Annual tax reliefs and allowances for the year 2024
|
Tax relieves |
Amount/year |
Conditions |
Required documents |
|
Taxpayer relief |
30 840 CZK |
Applicable for everyone also for non-residents |
No confirmation needed |
|
Spouse relief |
24 840 CZK |
The spouse´s income is lower than 68 000 CZK (excluding social security benefits e.g. parental benefits) and have to take care of a child under 3 years of age living in a common household |
Confirmation of spouse´s employer or signed Affidavit if the spouse is not employed Birth certificate of a child |
|
Allowance on children |
1. - 15 204 CZK |
The child is living with the taxpayer in the common household |
Birth certificate of the child, confirmation of other parent´s employer that he/she doesn´t apply the same allowance or Affidavit |
|
Disability relief |
a) 2 520 CZK |
The taxpayer is recognized as disabled, amount depends on the degree of disability |
Confirmation about the grade of your disability |
Personal deductions from the tax basement for the year 2024
(Income Tax Act Section 15)
|
Tax base deduction |
Deductable amount/year |
Conditions |
Required documents |
|
Donation for charitable purposes, incl. blood donation |
Max. 15% of tax basement |
At least 2% of tax basement, minimum amount is 1000 CZK |
Confirmation of the gift donated (contract, confirmation of an recipient of a gift), confirmation of a blood donation |
|
Mortgage interests |
Max CZK 300,000 / Max CZK 150,000 per a household (for loans concluded from 1 January 2021) |
Contract with the bank, to finance the taxpayer's permanent housing |
Confirmation of provided bank credit for housing needs and of the amount of interests from this bank credit |
|
Pension insurance contributions, Life insurance contribution |
Max. 48 000 CZK |
Payment of insurance for at least 5 years and simultaneously not withdrawn earlier than in 60 years of age |
Confirmation of paid amounts for pension insurance, supplementary insurance and additional pension savings, confirmation of paid amounts for private life insurance |
How to calculate your net salary/wage and the labour costs of your project
The basis for the calculation is your gross monthly salary/wage as set out in your employment contract with your employer.
Download the excel spreadsheet → which includes the formulas for how it is calculated. This example is only a simplified one, your situation may be more complex so it is advisable to ask your payroll accountant
Useful links and information
- j Information for UCT Prague staff on how to proceed in the OKbase electronic system
- Presentation "International taxation of a personal income for 2024" download in pdf →
- Financial administration – Tax electronically/ Finanční správa Daně elektronicky https://www.financnisprava.cz/cs/dane/dane-elektronicky
- Tax forms/ Daňové tiskopisy https://www.financnisprava.cz/cs/dane/danove-tiskopisy
- Contacts for Tax Administration and its territorial offices https://financnisprava.gov.cz/cs/kontakty
- Legalization of public documents issued in the Czech Republic - https://www.mzv.cz/jnp/cz/cestujeme/overovani_listin/
- 2023 Tax guideline Czech Republic, Accace
- UCT Prague, Department of International Relations, Welcome centre
Glossary
|
Income tax from dependent activity |
daň z příjmu ze závislé činnosti |
|
Tax office, local branche (Territorial office) |
Finanční úřad, územní pracoviště |
|
tax resident/ non-resident |
daňový resident/ nerezident |
|
Certificate of the tax-payer´s residence |
Potvrzení o daňovém domicilu |
|
tax period |
zdaňovací období |
|
INCOME Tax return by individuals |
PŘIZNÁNÍ k dani z příjmů fyzických osob |
|
DECLARATION of the taxpayer liable to personal income tax from dependent activity |
PROHLÁŠENÍ poplatníka daně z příjmu fyzických osob ze závislé činnosti |
|
REQUEST for annual account of prepayments and tax benefits for tax period |
ŽÁDOST o roční zúčtování záloh a daňového zvýhodnění za zdaňovací období |
|
CERTI FICATE of the taxable incomes from dependent activity, the withheld tax advances and tax advantage |
POTVRZENÍ o zdanitelných příjmech ze závislé činnosti, sražených zálohách na daň z těchto příjmů a daňovém zvýhodnění |
|
Tax reliefs, allowances |
slevy na dani |
|
non-taxable amounts of the tax base |
nezdanitelné části základu daně |
|
personal tax allowance (Taxpayer relief) |
základní sleva na poplatníka |
|
personal tax allowance for the student (Student´s relief) |
sleva na studenta |
|
residence address |
adresa bydliště |
|
personal identification number |
rodné číslo |
|
common household |
společně hospodařící domácnost |
|
a spouse |
manžel/manželka |
|
tax benefit for a child (allowance for a child) |
daňové zvýhodnění na dítě |
|
tax allowance for child placement in the organization of preschool age children care |
sleva za umístění dítěte v předškolním zařízení |