Do you have to complete your tax return yourself? Don’t worry – we’ll guide you step by step through all four pages of the form.
Heading: Enter the address of the tax office responsible for your permanent residence (jurisdiction is determined by region). The place of residence at the time of submitting the tax return is decisive. The form also includes a field for the relevant office – this is where your file is kept. You can find information on where you are registered at www.cds.mfcr.cz or obtain it from any local council office.
Line 01: Employees do not need to enter anything; business owners should enter the tax identification number assigned to them by the tax office when they registered for tax purposes.
Line 02: If you have a nine-digit social security number, do not add a zero anywhere; simply leave the last field blank.
Example: Jan Malý is not self-employed, so he only fills in the second field.
Line 03: Tick the appropriate tax return. The remaining lines are intended for those who discover an error in their tax return after submitting the form.
Line 04: Applies only to people who are in insolvency proceedings or who are completing the tax return for a deceased person.
Line 05: ‘Yes’ is for those who have a tax adviser. With their help, they can extend the deadline for submitting the tax return until 1 July, and the adviser will complete the form for them. This applies mainly to business owners. Employees generally have no reason to postpone submission. Anyone submitting their tax return without assistance should tick the ‘No’ box.
Example: Jan submits his tax return himself by 1 April and therefore ticks the ‘No’ box.
Line 05a: Applies to business owners who are legally required to have their accounts audited.
Unlabelled line: Don’t be misled: even if you are filling in the form now, you are submitting the tax return for the year 2015; therefore, enter this year in the first field. The two further fields ‘from/to’ only apply to business owners who are in insolvency, as well as those submitting a tax return on behalf of a deceased person.
Section 1
Taxpayer details
Lines 06 to 18: Enter your personal details as they appear on your identity card. The only lines that might cause problems are:
Line 07: Enter your maiden name if you took your husband’s or wife’s surname after marriage and now have a different name to the one you had when you were single.
Line 11: This applies only to those who pay tax in the Czech Republic but do not live here, i.e. foreign nationals.
Line 14: In smaller towns, houses do not necessarily have a house number. In this case, leave the field blank.
Line 16: Enter your telephone number – landline or mobile. This can save you time if an official calls you to quickly check a detail or ask you to submit a certificate at a later date. Therefore, please also enter your email address on line 17.
Lines 19 to 22: These lines are only to be completed by those who moved house at the beginning of 2016 and are submitting their tax return at a different address from where they lived during the tax year (2015).
Lines 23 to 30: These lines apply only to persons who pay tax in the Czech Republic but do not live here. Tick ‘no’ in line 30 if you have no business connections with a related party abroad.
A missing signature is the most common error dealt with by tax office staff. Remember that the applicant claiming a refund must sign twice on the back of the form.
Example:
Mr Jan Malý works as an accountant. His gross salary in 2015 was CZK 312,000. His employer paid social security and health insurance contributions totalling CZK 106,080 on his behalf. The employer did not make any income tax advance payments, but instead paid Mr Malý a tax credit of CZK 3,351, as Mr Malý has three children to support and the total tax allowances were higher than the calculated advance payment.
Jan‘s eldest daughter goes to school, Klárka is at nursery (nursery fees CZK 1,000 per month) and two-year-old Honzík is at home with his wife Zuzana, who is on parental leave.
The family lives in a house on which they are paying off a mortgage; they have received a certificate from the bank confirming that they have paid interest amounting to CZK 22,320. Jan has life insurance, pays CZK 1,000 a month and has also received a certificate from the insurance company for the premiums paid. Both spouses are blood donors; last year, each donated blood three times. Zuzana earns some extra money by giving private tuition in mathematics. In 2015, she earned CZK 24,000 in this way.
Section 2
Partial tax base, tax base, loss
Line 31: Employees must state their annual gross income from all employers. This information can be found on the certificate of taxable income issued by the payroll department.
Example: Mr Malý enters CZK 312,000.
Line 32: Enter the amount your employer has paid in social security and health insurance contributions on your behalf. You will also find this amount on your income certificate.
Example: Jan enters CZK 106,080.
Line 33: Enter this if you have received income from abroad (from a country with which the Czech Republic has no double taxation agreement) and have paid tax on it abroad.
Line 34: Add lines 31 and 32 and subtract line 33.
Example: Jan adds his gross income and the compulsory contributions paid by his employer; the result is CZK 418,080. This is his super-gross salary.
Line 35: Only for employees with income from abroad.
Line 36: Carry forward the figure from line 34.
Line 36a: Applies to employees who had income from abroad. Otherwise, carry over the amount from line 36.
Line 37: This field is intended for those who have earned income from business activities. On line 37, enter the value from line 114 of Appendix No. 1 to the tax return (we will cover this topic on 23 February).
Line 38: Does not apply to most people. This is where you should enter income from bond certificates, dividends, interest, etc., which was not taxed before payment.
Line 39: If you let out property, such as a flat, first complete Appendix No. 2 (we will cover this topic on 16 February). Transfer line 206 from this appendix to line 39.
Line 40: Transfer line 209 from Appendix 2. This relates to income you have earned, for example, from the purchase and sale of private assets (we will cover this topic on 16 February).
Line 41: Add lines 35, 38, 39 and 40 together, i.e. all income apart from employment income. Enter both positive and negative figures.
Line 41a: If you have no income from abroad, carry over the amount from line 41.
Line 42: The sum of line 36a and line 41a, provided this is positive. If line 41a is negative, the value from line 36a remains unchanged.
Example: 418,080 + 0 = CZK 418,080.
Line 43: To be completed only by persons liable for solidarity tax (total gross income exceeding CZK 1,277,328). Enter the gross income from employers, reduced where applicable by income from abroad that is exempt from taxation. In the example: CZK 312,000.
Line 44: To be completed only by entrepreneurs claiming losses from previous years.
Line 45: Subtract line 42 from line 44.
Section 3
Non-taxable portions of the tax base, deductible items and total tax.
Lines 46 to 53: Here you enter the details that may reduce the tax base (more on this on pages 2–4 of this magazine).
Example: Jan has donated blood three times and has a certificate to prove it. He can claim a tax deduction of CZK 6,000. He cannot claim a deduction for Zuzana’s blood donations; Zuzana must do that herself. Jan enters this information on line 46. He is paying off a mortgage and has received a certificate from the bank showing the interest paid. He enters the amount of CZK 22,320 in line 47; in the box next to the amount, he writes the number 12, as he has been paying off the loan throughout the year. In line 49, he enters CZK 12,000 as a deduction for life insurance payments. He is not a member of a trade union and has not paid for any further training. He leaves fields 49 to 53 blank or enters a zero there.
Line 52a: Relates to the arrangement of work placements. Not relevant to the average reader.
Line 54: Add up lines 46 to 53.
Example: 6,000 + 22,320 + 12,000 = 40,320.
Line 55: Subtract line 54 from line 45.
Example: 418,080 – 40,320 = 377,760.
Line 56: Round the amount from line 55 down to the nearest hundred.
Example: CZK 377,700.
Line 57: Calculate the tax. The tax rate is 15 per cent.
Example: 377,700 x 0.15 = 56,655.
Section 4
Total tax, loss
Line 58: Transfer the amount from line 57 or line 33 (for those who had income from abroad).
Line 59: This is where the solidarity tax is calculated. It is payable by those whose income in 2015 exceeded 1,277,328. The tax is calculated using the following formula: (Income – 1,277,328) × 7%.
Line 60: Total of lines 58 and 59.
Line 61: Applies to business owners who report a loss. Enter the amount from line 41 here without the minus sign.
Section 5
Claiming tax deductions and tax allowance
Lines 62, 63: This applies only to certain business owners.
Unlabelled lines in Table 1:
Top line: The details regarding the wife (or husband) must be completed by those who wish to claim the tax allowance for a dependent spouse living in the same household.
For the year 2015, you can claim higher allowances for the second and third child. Pensioners who have additional income alongside their pension, for example from letting property, employment or self-employment, can also reclaim the allowance for taxpayers. – Ondřej Homolka, tax adviser, AK Hartmanová & Steininger.
Line 64: Enter the amount by which each taxpayer may reduce their tax themselves; for 2015, this amounts to CZK 24,840.
Line 65a: Applies to married couples where one spouse has an annual income of less than CZK 68,000. The tax can be reduced by CZK 24,840. If the marriage took place during the year, the allowance of CZK 2,070 can only be claimed for those months in which the marriage had already existed since the first day of the month. Enter the number of months in the first field. Please note: Self-employed individuals who claim their expenses on a flat-rate basis cannot claim this allowance.
Example: As he was married for the whole year and his wife had income from private tuition totalling CZK 24,000 in addition to her maternity allowance, she will submit her own tax return. Nevertheless, Jan can claim the tax allowance for his dependent spouse. He enters the amount of CZK 24,840 in the relevant line.
Line 65b: If the dependent spouse is classified as having a Grade III disability or holds a ZTP/P card, you may deduct double the amount. This amounts to CZK 4,140 per month of maintenance payments, i.e. 49,680 crowns for the whole year. Please note: Even in this case, self-employed persons who claim their expenses on a flat-rate basis cannot claim this deduction.
Line 66: If you receive a disability pension for disability of Grade I or II, enter CZK 2,520 for the whole year or CZK 210 for each month in which you received the pension.
Line 67: If you are recognised as severely disabled (disability grade III), enter CZK 5,040 for the whole year or CZK 420 per month.
Line 68: This line is to be completed by persons who hold a ZTP/P card. You do not need to be receiving a disability pension. Enter the amount of CZK 16,140 per year or CZK 1,345 for each month in which you held a ZTP/P card.
Line 69: Students up to the age of 26 (full-time doctoral students up to the age of 28) may deduct an additional CZK 4,020 per year or CZK 335 per month of study. It does not matter whether the months of study overlap with months of gainful employment.
Line 69a: So-called nursery fees. If your child attends a nursery and lives in the same household as you, please submit a certificate stating the amount of fees you have paid. You can then claim the amount of up to CZK 9,200 for the year 2015 as a tax allowance. Only one parent may make use of this option.
Example: Jan claims CZK 9,200 against tax. Although the nursery fees were higher, the maximum amount for 2015 was exactly CZK 9,200. He attaches a corresponding certificate to his tax return.
Line 70: Add lines 62 and 69a.
Line 71: Subtract the allowance from line 70 from the calculated tax on line 60. If this results in a negative amount, enter a zero.
Example: Tax of CZK 56,655 minus the tax allowance of CZK 24,840, the allowance for the dependent spouse of CZK 24,840 and the allowance for nursery fees of CZK 9,200 = –2,225; Jan therefore enters a zero as instructed.
Unmarked lines in Table 2: Details of children living in the household. Enter the surname, first name, birth number and the period during which the children lived with you. If you are supporting more than four children, list the additional children on a separate sheet. This time, the table is divided into columns – each child has their own column for stating the number of months.
Line 72: Tax allowance for children for whom you provide maintenance. The amount is CZK 13,404 for the first child, or CZK 1,117 for each month the child lived with you (applies to children born during the year or who have completed their studies). If the child has a disability (holds a ZTP/P card), the amount is doubled. For the second child, the amounts are CZK 15,804 per year or CZK 1,317 per month, and for the third and subsequent children, CZK 17,004 or CZK 1,417. The allowance can only be claimed by one parent. Please note: Business owners who claim their expenses on a flat-rate basis cannot claim this allowance either.
Example: Jan claims CZK 46,212 – allowance for three children.
Line 73: Carry forward the amount from line 72, but not exceeding the amount on line 71.
Line 74: Calculate line 71 minus line 73 and enter the result in the field. The amount calculated in this way is the tax you are required to pay.
Example: Jan enters the tax amount 0, as calculated in line 71.
Line 75: The tax bonus is paid to those whose calculated tax (line 71) is lower than the tax allowance for children (line 72). The maximum possible tax bonus for 2015 is CZK 60,300; no one can receive more than this. A prerequisite for the payment of the bonus is that the parent earns at least CZK 55,200 per year (figure for 2015).
Example: Jan receives a tax bonus of CZK 46,212 (tax allowance for children) minus 0 (calculated tax) = CZK 46,212. He receives this amount as a tax bonus.
Line 76: Amount of tax allowance for children already paid by the employer – this figure is stated in the payroll statement.
Example: The employer paid Jan 3,351 × 12 = CZK 40,212.
Line 77: Calculate: Line 75 minus Line 76. The result is the bonus payments that the state still owes you.
Example: 46,212 – 40,212 = CZK 6,000.
Section 6
Additional tax return
Lines 78 to 83: Do not complete. These lines are intended for those who discover an error in their tax return and submit a correction to the tax office after the filing deadline has passed.
Section 7
Tax payment
Line 84: Enter the amount your employer has withheld in advance tax payments during the year, as confirmed by the payroll department.
Example: Jan Malý enters CZK 0.
Line 85: Employees do not complete this line. Self-employed persons enter the tax prepayments for 2015 that they made in the course of their business activities.
Is your wife on parental leave? If she did not earn more than CZK 68,000 in 2015, you can claim her as a dependent and deduct CZK 24,840 from your calculated tax. The reverse also applies: if the husband is on parental leave, his wife can claim the allowance.
Line 86: This applies only to a very small proportion of business owners for whom the tax office has set a flat-rate tax. Please note: do not confuse this with the flat-rate deduction for business expenses, which, on the other hand, is relatively common.
Lines 87 to 90: These fields are intended only for a small group of taxpayers.
Line 91: Subtract the amounts from lines 77, 84, 85, 86, 87, 87a, 88, 89 and 90 from line 74. If the result is a positive figure, you must pay the difference. If the result is a negative value, you do not have to pay any tax (if you have made advance payments or are receiving a child bonus, you will receive a refund).
Example: Jan did not make any advance payments through his work; on the contrary, he received a bonus. Nevertheless, he has calculated that the tax office will pay him CZK 6,000 in additional child bonus. He applies for the payment on the last page of the basic form, where he not only states the desired amount but also provides his account number and signs (twice – once for the tax return and once for the application for a refund of the overpayment).
Tax return Appendixes: In the right-hand column, state the number of pages for the relevant type of appendix, depending on which ones you are attaching.
Appendix No. 1: To be completed by business owners (who hold a trade licence or, for example, receive fees).
Appendix No. 2: This is to be completed by persons who derive income from letting or, for example, from the sale of private assets which they have sold at a profit within one year of purchase.
Appendix No. 3: Applies to persons with income from abroad to whom the credit method applies – income from self-employment and employment.
Insurance declaration: This appendix must be completed by those who were members of the so-called second pillar of the pension system.
Annual accounts: These are submitted by business owners who keep accounts (formerly: double-entry bookkeeping).
Confirmation from the employer: Employees must enclose this; they can obtain it from the payroll department. If someone changed jobs in 2015, they must request a confirmation from all previous employers.
Proof of a donation made: Confirmation of the amount paid or, for example, of a voluntary blood donation.
Confirmation of a loan: Anyone who has a residential loan from a mortgage bank or building society should enter this in line 47. The original confirmation of the interest paid must be attached to the tax return. In the first year in which the tax deduction is claimed, a copy of the loan agreement must also be attached.
Pension fund confirmation: Anyone who pays more than CZK 12,000 per year into a pension fund should enter this in line 48. The original confirmation of the payments made, received by post from the pension fund, must be attached.
Insurance confirmation: If you pay for life insurance that meets the legal requirements for deducting the insurance premium from your taxable income, enter this on line 49. Send the tax office the original payment confirmation sent to you by the insurance company.
Confirmation of further training: Proof of payment for an examination in a further training course required for the practice of your profession.
Confirmation from the childcare provider: Proof of payment of nursery or crèche fees.
Confirmation from the other spouse’s employer: A confirmation in which the other spouse’s employer states whether or not the other parent has claimed the child allowance.
Reasons for submitting a late tax return: Explanation of why you are submitting a late tax return.
Confirmation of amounts paid: Applies to non-residents for tax purposes and income from which tax has been withheld and which can be claimed as part of taxable income.
Confirmation from the foreign tax authority: Field for those claiming exemption from double taxation on foreign income.
Notification of entry in the land register: For those who have so-called ‘other income’ under Section 10 and have stated that this derives from the sale or transfer of property.
List…: List of certificates confirming taxes paid abroad.
Other attachments: For example, a certificate of enrolment for children over 18, a sworn statement from a spouse confirming they have no income…
Number of attachment sheets: In the right-hand column, add up the total number of attachment sheets you are enclosing with your tax return. Keep a copy of each one.
Example: Jan Malý has a total of six attachments: confirmation from his employer, proof of a blood donation, a statement from his insurance company, proof of interest paid by the bank, proof of paid nursery or crèche fees, and a statutory declaration from his wife stating that her income in 2015 did not exceed the limit of CZK 68,000.
First white table – I declare that…
Employees do not normally need to worry about filling this in. It applies to those who leave the completion of the forms to a tax adviser.
Second white table
Date, signature: Enter the current date in the ‘Date’ column and sign in the ‘Handwritten signature’ field – if you forget to do this, you will have to go back to the office.
Third white table – Application for a refund of the credit balance:
If you have a credit balance, it is important to fill in the unmarked lines in the white box at the bottom of page 4 of the tax return. You choose whether the money should be sent by post to your address or transferred to your bank account (the latter is quicker). Even if you complete and submit the return now, the tax office will not transfer the money until sometime in April. At the end, enter the date and sign again in your own hand.
Do you have an electronic data box (Datová schránka)? – You must submit your tax return via this.
Most people can decide for themselves whether to fill in the tax return by hand on a paper form or use the online form (for example at www.idnes.cz/dane ), the advantage of which is that it performs the calculations automatically once the data has been entered. However, anyone who has set up an electronic mailbox (Datová schránka) – even voluntarily – has no choice. They must use the mailbox and submit the return via it. Otherwise, a fine may be imposed, starting at CZK 2,000, but if the official is satisfied that the taxpayer has thereby made the tax administration’s work more difficult, the fine may be as high as CZK 50,000.
If you do not have an electronic mailbox, you can also submit the form via computer – using an electronic signature. If you opt for the traditional paper form, you can hand in the tax return in person at the office (ask for confirmation of receipt on a copy of the document) or send it by post as a registered letter – in this case, the proof of posting is sufficient.
If you forget to file your tax return, you will of course face a fine. However, there is no need to panic: although the official deadline is 1 April, the authorities will accept submissions up to 5 days later (the form must, however, have physically arrived at the tax office; sending it by post is not sufficient). The penalty is calculated at 0.05% of the assessed tax (or 0.01% of the tax shortfall). The maximum penalty is 5% of the tax or tax loss, up to a maximum of CZK 300,000. Penalties of less than CZK 200 are not imposed by the tax office at all. However, if you fail to submit your tax return at all, even if you may not have to pay any tax, the penalty is CZK 500.