Expat tax for the Czech Republic | eBook

The individual has a permanent place of residence in the Czech Republic in which they intend to stay permanently

The individual stays for 183 days or more in the Czech Republic continuously or intermittently in the calendar year

Employment income: Salaries, bonuses, remuneration of executives and members of the board of directors.

Self-employment income: Revenues from business and professional services.

Capital gains: Interests and dividends (from foreign sources), dividends and interests from Czech sources are usually subject to withholding tax at source and may not be included in the annual personal income tax return.

Rental income: Proceeds from the lease of real estate and flats, long-term rental of movables.

Provision of company car for work and private purposes: 1%/0.5% (electric vehicle) of the purchase price of the car (including VAT) is considered taxable income, this income is also subject to social security and health insurance contributions.

Non-monetary benefits such as contributions to cultural events, holiday vouchers, the possibility of using sports, health and educational facilities, books, etc.: this is tax-exempt income, if the related costs of the employer are not tax deductible.

Pension and life insurance contributions: exempt from tax up to CZK 50,000 / year.

Meal vouchers: the employer contributes 55% of the value of meal vouchers and the remaining 45% is paid by the employee, if the legal limits are met, this income is exempt from taxation.

Alternative to meal vouchers: cash benefits exempted up to CZK 107.10.

Must inform the relevant regional branch of the Labour Office of the Czech Republic in writing about the entry of an EU citizen or their family member into employment or to perform work within the framework of posting.

This obligation must be fulfilled by the employer at the latest on the day of taking up employment or performing work within the framework of the posting. Notifications can be submitted via a data box, in person or by e-mail.

In the event of termination of employment or posting, the employer is obliged to inform the relevant regional branch of the Labour Office of the Czech Republic also about termination of employment or of the posting within 10 calendar days at the latest.

When renewing an employment contract, the employee must be reported again.

If the contract is for an indefinite period, termination must be reported.

The employer faces a fine of up to CZK 100,000 for non-compliance with the information obligation.

Must inform the relevant regional branch of the Labour Office of the Czech Republic in writing about the foreigner’s entry into employment or the performance of work within the scope of posting. The regional branch of the Labour Office of the Czech Republic is competent according to the foreigner’s place of work.

This obligation must be fulfilled by the employer at the latest on the day of taking up employment or performing work within the framework of the posting. Notifications can be submitted via a data box, in person or by e-mail.

In the event of termination of employment or posting, the employer is obliged to inform the relevant regional branch of the Labour Office of the Czech Republic about the termination of employment or performance of work within the posting within 10 calendar days at the latest.

When renewing an employment contract, the employee must be reported again.

If the contract is for an indefinite period, termination must be reported.

The employer faces a fine of up to CZK 100,000 for non-compliance with the information obligation.

April 1, if submitted in paper form

May 1, if submitted electronically via data mailbox

July 1, if the tax return is filed by a tax advisor based on a power of attorney

Deadline extension by further 3 months, or until November 1 in case there is a foreign income