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 email@example.com.