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.

Other income: Proceeds from the sale of securities, sale of property (unless they are exempt from taxation).

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

Non-monetary benefits in the field of culture, education, purchase of services and goods from medical institutions, recreation and trips etc., which are provided by the employer to the employee or his/her family members, are exempt from taxation on the employee’s part only up to half of the average wage for the whole calendar year. For 2024, the threshold is CZK 21,983. The employee’s taxable income is the amount exceeding the limit. The tax non-deductibility on the employer’s part is linked to the exemption on the employee’s part i.e. expenditure on non-monetary benefits will always be tax non-deductible if it is also exempt on the employee’s part. Excess amounts might be tax deductible on the employer’s part if the entitlement to non-monetary benefits is based on an internal regulation, collective agreement or employment contract.

Meal vouchers, employer canteen and meal cash allowance: exempt up to 70% of the upper limit of the meal allowance that can be granted to employees for a business trip lasting 5 to 12 hours (CZK 116.20). For exemption from taxation, it is also necessary to meet the condition of the employee’s presence at work which lasts at least 3 hours. For shifts lasting at least 11 hours, it will be possible to grant double the amount. The amount above the stipulated limit is considered employee’s taxable income subject to social security and health insurance contributions (both on the employee’s and the employer’s side). The claim should be stipulated in an internal directive/employment contract.

Calendar year

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.

Furthermore, the employer is obliged to keep copies of documents proving the right of residence of foreigners, for the duration of employment and for a period of 3 years from termination, including translation into the Czech language.

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

Not requesting an A1 form from the respective authorities: up to CZK 20,000

Delayed report on social security: up to CZK 50,000

Delayed payment of the social security contributions: Late interest payment calculated on the CNB’s annual repo rate at the first day of the relevant calendar half-year increased by 8%. The late interest payment is issued only if exceeds CZK 1,000.

Delayed or missing registrations for the purposes of social security: up to CZK 20,000

Delayed report on health insurance: up to CZK 50,000

Delayed payment of the health insurance contributions: Late interest payment calculated on the CNB’s annual repo rate at the first day of the relevant calendar half-year increased by 8%. The late interest payment is issued only if exceeds CZK 1,000.

Delayed or missing registrations for the purposes of health insurance: up to CZK 10,000 or CZK 20,000 in case of repeated failure