In the Czech Republic, individual proprietors, OSV\u010c, are subject to specific deadlines for filing tax returns. Such persons are required to file their tax returns via certified electronic mailbox until a deadline extended to 2 May 2024. If they use the assistance of an accountant, the deadline is further extended to 1 July.<\/p>\n\n\n\n
Simona Hornochov\u00e1, Director General of the Tax Administration, recalled how, in past years, tax authority officials would travel to smaller municipalities to assist entrepreneurs in completing and submitting their tax returns in the field, a practice that involved around 490 trips. Until now, for those who prefer paper submission, the deadline remains 2 April, while for those who choose the telematic way, via the MY TAXES portal or data box, the deadline is postponed to 2 May. However, for it to be valid, the attached file must be in xml format only. By the end of March, 1.16 million declarations had been received, around 40% of the expected total, a number that is expected to rise in April.<\/p>\n\n\n\n
The year 2023 introduced significant changes with regard to income tax and individual tax returns. These include:<\/p>\n\n\n\n
\u2022 the increase of the non-taxable income limit for the self-employed from CZK 15,000 to CZK 50,000 per year, below which no declaration is required if no tax losses are incurred;<\/p>\n\n\n\n
\u2022 for employees with secondary incomes of less than CZK 20,000, the limit for filing the declaration was raised from CZK 6,000, thus enabling the employer to manage employment-related tax obligations;<\/p>\n\n\n\n
\u2022 a bigger discount was introduced for expenses due to placing a child in a pre-school (commonly called school fees), provided it is proven, up to a maximum of CZK 17,300 per year;<\/p>\n\n\n\n
\u2022 donations can be deducted up to 30% of the tax base;<\/p>\n\n\n\n
\u2022 persons who received no self-employment income in 2023, despite have a data box, they are not required to submit the declaration electronically.<\/p>\n\n\n\n
Although the discount for students and nursery fees has been eliminated as of 1 January 2024, taxpayers can still take advantage of it for the last year in the 2023 return. It is important to remember that the claim for child tax deductions is limited to one parent per household. As for the spouse’s allowance, it should be noted that not all types of income are eligible, for instance excluding sickness, maternity or unemployment benefits, with a maximum annual limit of CZK 68,000. Moreover, interest on mortgage loans may only be deducted from the tax base if the borrower owns the property or if it is a permanent residence.<\/p>\n\n\n\n
In the event that the declaration reveals an overpayment of taxes, the paper form must be signed both in the signatory’s section and on the date of submission, as well as in the section on the refund request. Although they are on the same form, they require separate signatures. For declarations submitted online, on the other hand, no signature is required.<\/p>\n\n\n\n
In the case of exempt income in excess of CZK 5 million, for example from donations, annuities, lottery winnings or the sale of jewellery, securities and shares, taxpayers must submit a notification detailing the amount of the income, its origin and the date of realisation. Failure to submit will result in penalties. The deadline for submitting declarations is until 2 April for paper format and 2 May for electronic format, with a further extension to 1 July for those using the assistance of tax advisors or lawyers. The latter date is also applied for those obliged to account for their financial statements. Within these deadlines, the assessed tax must also be paid.<\/p>\n\n\n\n
Sources: https:\/\/www.camic.cz\/<\/a> https:\/\/www.financnisprava.cz\/<\/a><\/p>\n\n\n\n AI-generated image<\/p>\n\n\n\n