Your obligation to do the Tax return is here, again.
Once a year, each individual (see excluded groups below) have to submit Tax return.
Who is not obliged to submit tax return?
Mostly people without taxable incomes (housewife/husbands, pensioners, students with “DPP”), and also people who have only one employment at the time, or more jobs that were consequently one after each other, or people with monthly income from “DPP” under CZK 10,000 or self-employed under flat-rate tax regime.
The deadline for submitting the last year´s income tax return (but also for paying the tax) is 3rd April 2023 (2nd May when submitted electronically). It can be done:
- Via your employer – if you have only one employment at the time (including „dohoda“), your company accountant will usually offer to do it for you. The company accountant will also inform you about various tax reliefs and allowance from the tax base. The accountant will probably need to see your Czech tax domicile (more on that later).
- By yourself. If you have more than one employment at the same time, “DPP” over CZK 10,000/monthly, “DPC“ over CZK 3,500/monthly and also some extra income such as from renting a flat, from stocks, from bitcoins, from abroad or if you are self-employed, you have to submit tax return on your own.
Czech tax domicile
It is declaration, that you are a Czech tax resident. If the so called „centre of your life interests“ is in the Czech Republic for more than 183 days in a calendar year, you are a Czech tax resident and you will have to tax all your worldwide income in the Czech Republic. Learn more about how to obtain it here.
You can get some money back
If you will submit tax return, you can also claim various tax reliefs and allowance (deductions) from the tax base.
By various allowances, you can adjust (reduce) the tax base, not the tax itself. Those can be charity gifts, life insurance fees, private pension saving contributions, mortgage interest payments, blood donations, etc.
After calculating the final 15% of the reduced tax base (see above), tax reliefs can be applied as discounts on the final tax. The tax reliefs are following: every taxpayer can claim „Taxpayer bonus“ in the amount of CZK 2,570 per month, students can also claim additional CZK 335 per month. There are others: for a maintained spouse, for maintained children, for kindergarten tuition and more.
If your annual tax base is CZK 400,000 and you will not use any tax allowances/reliefs, then your tax will be CZK 60,000. But it could be way less. First, you will use tax allowances, e.g. the amount of mortgage interest paid and gifs worth CZK 20,000, to decrease the tax base, so your new tax base is now CZK 380,000, of which the tax (15%) is CZK 57,000. Now, you will use tax reliefs, e.g. the taxpayer´s bonus of CZK 30,840 and a child bonus of CZK 15,204, and your final tax will be only CZK 10,956.
If you want to know more about taxes, how to fill in your own tax return, please join our online event on 8th March ONLINE.