Preparation of annual
Income Tax Return

What and who is it for? Individuals who have income from entrepreneurial activities, capital gains, interest, dividends, rental income and other income except for employment income from one or more consecutive employers who fully process the employment income via Czech payroll are obliged to file the personal income tax return on an annual basis. The same apply e.g. for employees who generate income from ESOP operated by foreign entities. The tax year in the Czech Republic is the calendar year. In the personal income tax return the Czech tax residents declare and tax their worldwide income while Czech tax non-residents are obliged to declare and tax only Czech sourced income. 

 

Why do I need it? In case of omission to file the tax form, the tax office will charge the individual with late filling fine and in case there is a tax underpayment which is paid late (due date is the filling deadline of the tax form), the tax office charges also late payment interest.

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When do I need to file? The general filling deadline is 1 April of calendar year following the respective tax year. In case the tax form is filled electronically, the deadline is 2 May of year following, in case the tax form is prepared and filled by tax advisor, the deadline is 1 July of year following. Upon agreement with tax office and when fulfilling special conditions the deadline may be postponed to 1 November of year following.

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