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Updated : 26/06/2017

Income taxes abroad – Czech Republic

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I'm an employee

Which income will be taxed in the Czech Republic?

  • Living in the Czech Republic for at least 6 months in the (current) tax year? You are usually considered as resident for tax purposes and have to pay tax on your worldwide income there.
  • Living in the Czech Republic for less than 6 months in the (current) tax year? You are usually not considered as resident for tax purposes and pay tax only on income earned in the Czech Republic.
  • Income from other EU countries? Make sure you never pay tax twice on the same income.

How much will you pay?

What's left of your gross income in the Czech Republic after deduction of taxes and social security contributions?

Income tax rates for 2016 (declared in 2017 return)

In the Czech Republic, you pay income tax at an annual flat rate of 15%.

Take into account:

  • social security contribution and health insurance paid by your employer – these increase your basic taxable income
  • tax allowances (available to all taxpayers, but the amount depends on your personal situation)
  • any deductions you are entitled to for certain types of expenditure.

Even if you are not considered as resident for tax purposes you can apply for tax allowances – provided that your income from Czech sources amounts to at least 90% of your worldwide income. Check with the local tax office.

When and how do you pay?

Your employer deducts the income tax due from your salary.

How to appeal / complain

If you disagree with your tax assessment, you can appeal to the tax office. Read your tax assessment letter carefully to find out exactly which department you should send your appeal to and which procedures you need to follow.

Links

Czech Republic government – income tax info

I'm self-employed

Which income will be taxed in the Czech Republic?

  • Living in the Czech Republic for at least 6 months in the (current) tax year? You are usually considered as resident for tax purposes and have to pay tax on your worldwide income there.
  • Living in the Czech Republic for less than 6 months in the (current) tax year? You are usually not considered as resident for tax purposes and pay tax only on income earned in the Czech Republic.
  • Income from other EU countries? Make sure you never pay tax twice on the same income.

How much will you pay?

What's left of your gross income in the Czech Republic after deduction of taxes and social-security contributions?

Income tax rates for 2016 (declared in 2017 return)

In the Czech Republic, you pay income tax at an annual flat rate of 15%.

You may be entitled to a tax-free allowance and deductions for certain types of expenditure.

Even if you are not considered as resident for tax purposes you can apply for tax allowances – provided that your income from Czech sources amounts to at least 90% of your worldwide income. Check with the local tax office.

Non-resident taxpayers are also entitled to a basic tax discount of CZK 24 840 per year.

If you are a tax resident in the Czech Republic, you can use the flat rate (40, 60 or 80 pct) to calculate tax.

When and how do you pay?

If as a non-resident you receive income from business, renting or more concurrent employment, you are obliged to submit tax returns in the Czech Republic and have to pay the tax by 1 April or 1 July (if you cooperate with the tax advisor).

Any adjustments needed to correct over- or underpayment will be made once you file your annual tax return.

If last year you paid more than CZK 30 000 in income tax, you have to pay tax advances (40 percent of your last tax liability) twice a year. If your annual tax is higher than CZK 150 000, you have to pay four times a year. Payment is due on the 15th day of the third, sixth, ninth and twelfth month.

In the first year of business, tax advances do not apply.

How to appeal / complain

If you disagree with your tax assessment, you can appeal to the tax office.

Read your tax assessment letter carefully to find out exactly which department you should send your appeal to and which procedures you need to follow.

Links

Czech Republic government – income tax info

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