Czech income taxes in 2023: a guide for foreigners

1. Deadline

The basic deadline for submitting a tax return for 2022 is 3 April 2023. If the tax return is filed electronically, then the deadline is extended to 2 May 2023.

A tax return can be filed: in person, by mail, electronically. Taxpayers with a data box submit their tax returns through it. Self-employed persons (in Czech “OSVČ”) must file their tax return through a data box.

2. You will need these documents

If a person is employed, they will need a certificate of taxable income from their employer. Trade license holders should compile their invoices paid for the given calendar year. Flat-rate expenses or real expenses related to their business may be applied. If flat-rate expenses are used, filers are not obliged to keep any receipts or invoices received.

Trade license holders must determine any advances they paid for pension insurance (ČSSZ, or PSSZ in Prague) and public health insurance (VZP or provider you are registered with). Taxpayers should automatically receive this information after the end of the year (if you have an e-account with these institutions the information is available online). These numbers will be needed to prepare a statement of income for self-employed persons.

3. Deductions

Tax filers also need a confirmation of their deductions. In order to claim the mortgage interest deductions, those filing taxes must prove how much interest they paid the previous year via confirmation from the bank. If the taxpayer has dependent children, one of the parents may claim a deduction for them. Similarly, if a taxpayer wishes to claim a deduction for a non-working spouse, then that spouse must sign a declaration that his or her income has not exceeded a certain limit that year (CZK 68 000). You may also deduct payments for kindergarten.

After summing up all your types of income, you will get your tax base, from which you can deduct all that we mentioned above (if applicable). The tax rate imposed on your total tax base is 15% for the tax base up to approximately CZK 1 867 728 and 23% for the tax base above this amount.

4. Download the tax return form

Find a tax return form online (in English), but you have to submit the filled in form solely in the Czech language. Thus, we recommend finding an English-speaking accountant or even a tax consultant to help you with this task.

5. Submit

You can submit your tax return in any office of the Financial Authority (there are 12 offices in Prague), but if you already have temporary/permanent residence, it should be in the area of your residence. Find out with this website which office you belong to. On this website fill „PSČ PLÁTCE DANĚ“ which refers to the postal code of your accommodation. If you submit your tax return once you also have to do it in the same office the following year, unless you will ask the Tax Authority for the relocation of your “profile” to another tax office (in case of moving). You can submit it online via government website mojedane.cz (you can access it through your Data mailbox), unfortunately only in the Czech language.

6. Other obligations for self-employed

Once a year you have to also submit the Summary of Income and Expenses to both the social security office and your health insurance office. The deadline is 2nd May. All self-employed persons (except those with flat-rate tax) are obliged to fill in and submit the summary, even those for which there is no minimum assessment base.