The obligation of foreigners to submit a tax declaration in the Czech Republic. How to declare and pay taxes in the Czech Republic for foreigners. Czech tax declaration
Do foreign citizens in the Czech Republic need to submit a tax declaration
In Czech, the tax declaration is called danove priznanı or priznanı k dani z prijmu. In the Czech Republic, taxes are collected by FU or Financnı urad. FU is an agency of the Czech Ministry of Finance (Generalni financnı reditelstvı). Tax declaration in the Czech.
Income tax (daň z příjmů) is paid by employees of companies and entrepreneurs. Czech citizens and foreigners living in the Czech Republic declare their income for the past year in the document dánové přiznání. As a rule, the declaration is submitted by all employees who last year received income in the Czech Republic in the amount of more than 15 thousand Czech crowns and from which tax is not withheld.
For many employees, the issue of paying taxes is decided by an accountant at the company and, therefore, they do not need to fill out a tax declaration for foreigners in the Czech Republic. Most often, filling out a tax declaration is necessary for foreign citizens in the Czech Republic with several sources of income and individual entrepreneurs. Academic degrees
Annual income tax return in the Czech Republic. Who should submit a Czech tax declaration?
1. Employees of companies with multiple sources of income
In the case when the only source of income in the Czech Republic for an employee is a salary in the company, the accounting department at the place of work will make an annual tax calculation for the employee. The annual tax calculation replaces the tax declaration in the Czech Republic.
In other cases, the accounting department of the company issues a certificate of income in the Czech Republic, and then you fill out and file the Czech tax declaration yourself. For example, if you rent apartments. Or you work in the firm as a consultant and are not a full-time employee. The annual tax calculation in the Czech Republic, which will be made by the main employer, will not contain information about all income. Full information about income contains only a standard 4-page tax declaration, which you must submit on time.
2. Individual entrepreneurs in the Czech Republic collect accounting documents in a regular folder during the year. At the end of the year, entrepreneurs hire an accountant, bring a folder with documents to the accountant and pay for filling out a tax declaration in the Czech Republic. Entrepreneurs declare income and pay tax on business income at the same time as other income.
Deadlines for filing a tax declaration in the Czech Republic
If you send the declaration to the Czech Republic via a digital mailbox — datová schránka, then this must be done by May 2, 2023. On the deadline for submitting the declaration in the Czech Republic, you also need to have time to transfer the tax. A paper tax declaration in the Czech Republic for 2022 must be submitted by April 3, 2023. However, even if you didn’t have time to do it on time, it’s okay. Just submit the declaration, and the sooner the better. The Ministry of Finance of the Czech Republic charges a penalty for each day of delay, but only from the amount of underpayment of tax. The declaration form hardly changes from year to year. If you fill out the declaration correctly once, you will be able to fill it out again next year.
Who is concerned about the obligation to submit a declaration in the Czech Republic
The obligation to submit a tax declaration arises for everyone who received income in the amount of more than 15 thousand CZK last year.
The law, where the tax obligation of citizens and tax residents of the Czech Republic is fixed, can be read here: https://www.zakonyprolidi.cz/cs/1992-586
The limit of 15 thousand Czech crowns does not count income in the Czech Republic, from which tax has already been deducted, for example, in the form of srazkove dane. Also, income that is not subject to taxation is not taken into account. In some cases, the tax is deducted by the person who pays the income, for example, the employer.
Sometimes there is an obligation to submit a Czech declaration, but a person does not have to do it on his own. This happens when you had no other income other than a salary at one place of work. In this case, ask the employer to hand over the annual tax calculation for you. The employer is obliged to draw up and submit an annual tax calculation if the employee asks to do it on time. The annual tax calculation replaces the czech tax declaration.
The condition for the annual calculation of the tax is to fill out a pink prohlasenı k dani form from the employer. This form is usually signed when applying for a job, and then it is extended every year until February 15. In some accounting departments, the prohlasenı k dani is filled out once, and the form is extended automatically. The form determines the method of deducting the deposit for tax in the Czech Republic. If the form is completed, the employer deducts the deposit, taking into account tax deductions and discounts. According to the rules, only one employer can fill out this form at a time.
The obligation of foreigners in the Czech Republic to submit a declaration
Employees who have a third type of duty: independently submit a tax declaration in the Czech Republic cannot ask for an annual tax calculation. But even in this case, you should not literally understand the word “independently”. The word “independently” in this case means “there is no legal basis to require the submission of a declaration from the employer.” If you do not want to make a declaration yourself, you can order a document from a tax consultant who will fill out and submit a tax return in the Czech Republic instead of you.
When you need to submit a declaration yourself in the Czech Republic
Cases when an employee cannot use the right to an annual tax calculation, which is done by the employer’s accounting department, and must submit a declaration himself:
1) The employee had several employers. If an employee has worked for several employers at the same time during the past year, he is obliged to submit a tax declaration in the Czech Republic himself.
2) The employee had additional income. A foreign worker submits a declaration himself if, in addition to his salary, he has received other taxable income exceeding 6 thousand Czech crowns, for example, from business, renting an apartment or selling, for example, an apartment. As with the limit for submitting a declaration of 15 thousand Czech crowns, it also matters here that the money received was not taxed in the Czech Republic.
3) For some reason, the employee has not signed with the employer prohlasenı k dani in the Czech Republic.
Who should file a tax declaration in the Czech Republic 2023
A special case when you need to submit a Czech tax declaration, regardless of the amount of income, is a tax loss. A tax loss can only arise in connection with entrepreneurship or hiring. A tax loss is a situation where the expenses deductible from the basis for calculating the tax exceed the taxable income. At the same time, it does not matter what type of reporting the payer keeps.
The declaration is also submitted independently in the following cases:
- you are not a tax resident of the Czech Republic, but the main or only sources of income are located in the Czech Republic, and you want to receive tax deductions
- in addition to income from the Czech employer, the employee received income from other countries
- you were paid insurance ahead of schedule, or part of it, which was partially paid by the employer, while the employer’s payments were exempt from taxes. This item concerns zivotnıho pojistenı and penzijnıho pojistenı.
Submission of a tax declaration in the Czech Republic for foreigners
Income tax form in the Czech Republic. The declaration in the Czech Republic can be submitted in paper or electronic form. The tax declaration form can be filled out by hand or on a computer. The declaration must be printed out, filled out, signed and brought to the tax inspectorate at the place of residence. The tax declaration can be submitted in person, by mail or electronically. Taxpayers who have an electronic data box (datová schránka) file their tax declaration through it.
Tax declaration in the Czech Republic online
Individuals who do not have a “digital mailbox” and who want to avoid queues at the tax inspectorate can file their tax declaration electronically. In these cases, you can use the portal “My taxes” on the website of the tax administration https://adisspr.mfcr.cz /.
Corrected tax declaration
Taxpayers who find an error in their tax declaration before the deadline for filing a regular declaration can correct it by submitting a corrected version. The corrected declaration can be submitted several times, the tax service will consider the last submitted version. If the corrected tax return is filed within the prescribed period, the tax service will not charge you any penalties.
Amended tax declaration
In practice, there are situations when a taxpayer only discovers after the deadline for filing a tax declaration that it has been filled out incorrectly. In such cases, it is necessary to file an amended tax declaration within one month from the date of the error detection.
Where can I find the forms for downloading danove priznanı
The tax obligation can be fulfilled by filling out a tax form on two or four pages. The relevant forms can be found on the website of the tax administration https://www.financnisprava.cz/cs/dane/danove-tiskopisy
Filling out a Czech tax declaration for foreigners is a very boring business. But in this case, you can find useful knowledge. Having drawn up the document, you will see how much you actually earn. Remember how much money you give every year in the Czech Republic in the form of taxes. Perhaps you will do something in the future to get tax deductions in the Czech Republic. Maybe you can use deductions to reduce the amount of tax next year.
Features of filling out the Czech tax declaration
Signatures in the Czech Republic tax declaration 2023
When you submit a declaration on a paper form, you need to sign it at the end. If you request a refund of the overpayment at the same time, you must also add a signature in the appropriate field. Formally, there are two applications and both must be signed.
Request for refund of overpayment of taxes in the Czech Republic
You must explicitly request a refund of any overpayment of taxes in the Czech Republic (in the appropriate column at the end of the tax return) and choose a payment method (specify the bank account number, etc.)
Appendices to the Czech tax declaration
Do not forget to attach all the documents about your right to tax benefits. First of all, this is a confirmation from a pension company, a bank (mortgage), a building society (housing loan), an insurance company or a gift agreement (gift certificate).
In any case, filling out a form on a computer is not considered an electronic submission if you then print it out and send it in paper form. Anyone who has created a data box voluntarily and is not required to do so by law (not a self-employed person) is not required to submit an electronic declaration.
Basic discount for the taxpayer in the Czech Republic
The basic taxpayer discount in the Czech Republic on income for 2022 increased by three thousand crowns, that is, to 30,840 Czech crowns.
This discount can be used in full by those who had any taxable income in the previous year. It doesn’t matter that you had taxable income in the Czech Republic only for a few months. This discount is always calculated for the whole year. Therefore, the discount is not divided into calendar months, even if you had taxable income in the Czech Republic only in December.