| The deadline for income taxes has passed, but did you know that for employees and trade license holders it is still possible to claim missed tax benefits from 2009, 2010 and 2011? |
Important: Czech Income Tax Return for 2011 - Deadline is 02.04.2012
The Czech Bookkeeping year for s.r.o.s, trade licenses and private individuals (employees) runs from the 1st of January till the 31st of December (01.01.2011-31.12.2012), after which there is a 3-month period to file the last year's Income Tax Return.Therefore the earliest possible day to file is 1.1.2012 and the last possible day to file an Income Tax Return for 2011 is 31.03.2012. This doesn't mean that the tax year is from March until March(!)
Wwe highly recommend to contact us as soon as possible, because by the end of March we will be very busy.
Extending / postponing filing the 2011 Income Tax Return:
This year, 31.03.2012 is a Saturday, which means that there is a grace period till Monday 2.4.2012.A tax extension filed on Monday 2.4.2012 is still in time.
It is not possible to file for an extension after Monday 2.4.2012 - it will be too late.
In other words: if you want to extend, you must come to sign for the extension latest Monday 2.4.2012.
Extending your tax return means that we get 3 months more to file (until 31.06.2012)
and our tax advisor will take responsibility for the correctness of the tax return.
Costs for Extending a Tax Return
For personal income tax returns and tax returns of trade licenses we charge a fixed fee of 3.500 CZK.For sro's the responsibility is greater and therefore we first must see the papers before being able to give an estimate.
Not filing an Iincome Tax Return at all
Even if the business (sro company or tradelicense) did not have any activities or did not generate any money in 2011, you are obligated to file a tax return, at least a 0-tax return.For sro's, not filing may have the consequence that the taxoffice will eventually ask the tradelicense register / commercial court to de-register the company, making it impossible to trade (and consequently, the visa of the director will expire).
For tradelicenses, earnings are forwarded from the taxoffice to the social office (everybody) and the health insurance (EU-only). Not filing will mean that the social- and health office will not get this information and you can expect letters from them, because they have nothing to base the new montlhy fees on.
For employees, not filing usually means missing out on tax benefits for yourself, your spouse and children, paid mortgage interests, paid life insurance, gifts - few companies automatically assign these benefits to the (foreign) employee, so in order to claim them you will have to file a taxreturn.
An Income Tax Return is required for extending a business visa!
Due to the new, much more strict visa regulations you should have proof of regular income, as jednatel of an sro company (the so-called director's remuneration) or as trade license holder. This means personal income, not revenue generated by your business. This personal income may also contain income from abroad, but if you do not have such income, your sro company / trade license is your only source of income. This personal income is dependent on how many people you support in your household, and the personal income tax return is used to check whether you comply.Beside this income requirement, the Ministry of Interior may require other proof of income and business activities, such as bank statements, invoices and expenses, however, the tax return is the most valuable document as proof for having your business in order and active.