If you have owned Czech trade license in 2015 (e.g. you were self-employed), you are obliged to file a tax declaration for 2015. Deadline for filling in your tax report is the end of March 2016. By the 31st of March 2016, you need to give the report to your local tax office (district of your permanent residence in CZ).
Most people are terrified of taxes and all tax related paperwork. The whole tax situation can get especially overwhelming when you’re a foreigner and all the forms and applications provided are in a foreign language. We won’t lie, even for native Czechs deciphering the paperwork for trade license holder’s’ income taxes isn’t a piece of cake.
As a self-employed trade license holder, you are supposed to register for public health insurance and social insurance taxes. Throughout the year, you’ve been paying monthly deposits for social and health insurance. For comparison, in 2015 the minimum monthly payment was 1797 CZK for health insurance and 1943 CZK for social insurance. In the first months of the new year, you should receive payment statements for both health and social security. You’ll use those statements to calculate whether you have paid enough/too much in your monthly deposits from the previous year and how much you will need to pay in the new tax year.
Did you know, that minimum monthly payments for 2016 is 1823 CZK for health insurance and 1972 CZK for social insurance?
To start with, you need to download the tax declaration form (can be downloaded HERE, UPDATED on September 21: the link had to be removed – file not found). First, calculate your tax base, which is your business profit (income vs. expenses). Your tax rate is 15% from your tax base, however, in specific cases this might be subject to change. Best is to get a professional advise from a tax expert, Foreigners.cz can recommend you one of our reliable partners. Just let us know, that you need assistance at prague@foreigners.cz.
Hi,
nice article. Thanks for the information!
After reading it, I have one question. In the article is written that “If you have owned Czech trade license in 2015 (e.g. you were self-employed), you are obliged to file a tax declaration for 2015”
Does this mean that if I have been working in CZ a company (an a normal employee) I am not obliged to file a tax declaration?
Thanks!
Hi Diego, thanks for the feedback!
If you’ve been employed by a Czech company, you still need to file a tax declaration. However, in most cases your employer will take care of it as they have all the info about your wage, social security and health insurance payments – you’ll just get a tax form from your HR and will put your signature on it.
It pays off to double check though 🙂 Ask your HR or somebody else who is responsible, about the tax declaration.
Good luck!
Hello Annie fed!
Very useful info. especially for the foreigners.
Well, i got a question here. Please help me out. I used to run restaurant in Cz back in 2013-2014 but i closed it down after it and postponed my business license instead canceling it.
Does it mean i am still obliged to submit any papers to tax department or no need it?
Secondly, i was working as a part-timer some time back here but currently i am unemployed. Does this category also comes under any tax deartment too?
Thanks for your time and concern in advance.
I appreciate it.
Hi Gurlal, thank you for your questions!
Tax declaration should be filed for the past year till the 31st of March of the current year. This means, if you ran any business in 2013, you should have filed the declaration till 31.3.2014. Same for all the following years.
Again, if you were employed, even part-time, the declaration should be filed to the tax department. As you are talking about the previous years, I think a professional tax advisor consultation will be necessary. You can drop a line to my colleague prague@foreigners.cz – they will be able to advise somebody reliable.
Regards,
Anna
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Of course, Setbeat iphone English is available yet just after installation. Do not stress as we have you covered.
merely ask for the Huge download page to be opened in desktop computer mode in your web internet browser then you should have.
Thanks for all info! One question, i will live in Prague and live from the incomes I receive from Germany regarding financial trading. Do I still need to declare taxe in Czech Republic? And do i have to pay the social insurance and health insurance as mentioned above?
“Czech Republic has a corporate tax rate of 19%. Companies that operate under VAT have to pay tax on purchases at 21%. Certain services, like those related to foodstuffs (excluding essential child nutrition), some of the soft drinks, take away food, water supplies, medical equipment for disabled persons, children’s car seats, and others, benefit from a 15% VAT rate.” (source: http://www.confiduss.com/en/jurisdictions/czech-republic/business/company-formation/)
Is that information is still relevant or there’s changes during the current crisis?
Hi Bextol,
as far as I am concerned, this remains the same. However, you might find more information on this site.
Kind regards,
Anna