Practical Tips for Filing a Tax Return

This article is valid only for the Czech Republic.

The deadline for submitting your tax return is approaching, and with it comes the question of how to proceed correctly. Filling out and submitting a tax return can sometimes be challenging, especially if you’re unsure which forms to use or whether you even need to file one. In this article, we’ll guide you through the entire process, including common questions and tips for completing your tax return.

Who Needs to File a Tax Return?

• Income Threshold: A tax return must be filed by anyone (self-employed individuals, employees, students, etc.) whose annual income, subject to personal income tax, exceeds 1 992,24 EUR. This excludes tax-exempt income or income taxed at a flat withholding rate.
• Tax Loss: Even if your income is below 1 992,24 EUR you must file a return if you have incurred a tax loss.
• Employees with Additional Income: Employees with supplementary income from business, capital investments, rental properties, or other sources must file a tax return if this additional income exceeds 796,90 EUR per year.

Who Is Exempt from Filing a Tax Return?

• Employees whose income comes from a single employer who handles annual tax reconciliation or from multiple employers, each with a signed taxpayer declaration.
• Individuals with income below 1 992,24 EUR (e.g., occasional earnings) and no tax loss.
• Recipients of tax-exempt income, such as scholarships, maternity or parental benefits, and sickness benefits.

If an employee is not required to file a tax return, they can request their employer to perform the annual tax reconciliation. If they do not request this and do not voluntarily file a tax return, their tax obligations are fulfilled through monthly payroll tax advances.

Deadline for Filing a Tax Return for 2024

• Paper Returns: Must be submitted by April 2, 2025 (three months after the end of the tax year).
• Online or Data Box Returns: May be submitted until May 2, 2025.
• With a Tax Advisor: The deadline is extended to July 1, 2025, but this must be reported to the tax office by April 30, 2025.

Don’t forget to pay any due taxes by the same deadline. Late submission may result in penalties.

Step-by-Step Guide to Completing Your Tax Return

Filling out a tax return can be daunting. Here are some helpful tips:

1. Gather All Necessary Documents:
   Common documents include issued invoices, confirmation of taxable income from your employer, unemployment office confirmations, rental income documentation, investment account statements, and mortgage or donation confirmations.
2. Use the Correct Form:
   Download the current 2024 tax return form from the Financial Administration’s website. If unsure, you can use templates or interactive forms available online. Look for the form titled “Income Tax Return for Individuals.”
3. Fill Out Basic Personal Information:
   Include your name, address, and taxpayer identification number.
4. Declare Your Income:
   Break down your income by categories (§6 – employment, §7 – business, §8 – capital income, §9 – rental income, §10 – other income).
5. Claim Tax Deductions:
   Apply applicable deductions, such as for dependents, students, disabilities, or donations. Self-employed individuals can also claim flat-rate expenses.
6. Check and Calculate Your Tax:
   Use interactive forms to verify your entries and calculate your tax liability automatically.
7. Attach Supporting Documents:
   Include confirmations for taxable income, donations, mortgage interest, and other relevant documents.
8. Sign the Form:
   Don’t forget to sign the form if submitting a paper version.

Where to Find the Tax Return Form

1. Czech Financial Administration Website:
   Download the form from the official website, where both interactive and PDF versions are available.
2. My Taxes Portal:
   For electronic filing, use the interactive form on the My Taxes portal. The system will guide you through the process and check for errors.
3. Tax Offices:
   Paper forms are also available at tax offices across the Czech Republic.

How to Submit a Tax Return

1. In Person or by Mail:
   Download and complete the form, then submit it at a tax office counter or mail it.
2. Electronically:
   Use the My Taxes portal (mojedane.cz) for a modern and convenient method. Interactive forms simplify the process and check for errors.
3. Via Data Box:
   If you have a data box, you can securely submit your return electronically. Save the form in the required format and upload it directly to the system.

What if I Make a Mistake or Miss the Deadline?

• Corrections:
  You can file a corrected tax return before the deadline or a supplementary return after the deadline.
• Late Filing:
  Failure to file on time may result in penalties, which depend on the delay and tax amount.

Special Cases

• Self-Employed Individuals:
  In addition to a tax return, self-employed individuals must submit reports to health insurance companies and the Social Security Administration.
• Real Estate Tax:
  If you bought or sold a property during the year, you must file a property tax return.
• Investments and Shares:
  Determine whether your income from securities is taxable or tax-exempt. Income exceeding 100,000 CZK or derived from securities held for less than three years is taxable.

Conclusion

Filing a tax return can be straightforward with online tools and interactive forms. If you’re unsure, seek assistance from a professional or contact your local tax office. Filing accurately and on time helps you avoid penalties and potential complications.