Filing Employee Income Tax Return 2012 in Czech Republic

Expat Accountant files czech Income Tax Returns and claims tax benefits for employees

Alexio.cz offers accounting services, calculate tax deductions, claim tax benefits and file Income Tax Returns for foreigners working in Czech Republic.

What we see every year is that many employees miss out on tax benefits because the company they work for do not file a tax return at all, or leave out deductions for the employee (23.640 CZK), spouse (24.840 CZK) and children (11.604 CZK / child). In a typical 2-child family, these benefits are +/- 70.000 CZK annually!



Not filing also means missing out on tax reductions for 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.

It is even possible to correct years 2010 and 2011 and claim missed tax benefits of these years.
Tax Returns of 2009 and before will not be taking in consideration by the tax office.

Read about claiming (lost) tax benefits here:

Important: Employee Income Tax Return - File or Extend LATEST Monday 01.04.2013

It is possible to file an Income Tax Return for 2012 between 1.1.2013 and 31.03.2013. However, this year 31/3/2013 is a Sunday, and therefore it is still possible to file in time on Monday 1/4/2013.

In case you do not manage 31.03.2013, read about extending / postponing filing the tax return here:

Is filing a personal Income Tax Return necessary?

Yes, in order to claim tax deductions / benefits

If your only income is from czech employment, and the company prepares your taxreturn including all possible tax deductions, then there is no need to file seperately.

However, 90% of the companies do not file at all (they are not obligated) or only apply your personal tax deduction of about 24.000 CZK, and do not take in consideration spouse and children and other possible tax deductions, so you end up paying 10.000s of CZK too much tax every year.

It is even possible to correct years 2010 and 2011 and claim missed tax benefits of these years.
Tax Returns of 2009 and before will not be taking in consideration by the tax office.

Yes, in order to save taxes on foreign income

In case you have other sources of income (dividends, capital gains, foreign income, rental income) or you started halfway during the year your job as employment and worked some months abroad at an other company, you will have to file an Income Tax Return, if you are tax resident in Czech Republic.

Declaring (foreign) income in Czech Republic instead of the country where you made this income will most likely result in far less taxes to be paid.

An employee Income Tax Return will help for extending the business visa of your spouse!

Due to the new, much more strict visa regulations directors and trade license holders must have proof of income (+/- 9.500 CZK NET for one person), and proof of business activities: bank statements, invoices and expenses.

One of the most important things the Foreign Police (Ministry of Interior) asks for is the taxreturn.
If one can't show enough income (czech or foreign), it will be hard to extend a business visa.

If you are a couple, then your employee income will be taken in consideration for the extension of the business visa of your spouse - therefore it is important to have a Income Tax Return or at least bankstatements / an overview from your employer stating your earnings in 2012.

Pricing for an Income Tax Return Services

It is unfortunately not possible to make an exact offer before studying your papers, because every case is unique and unprocessed accounting and international aspects (employment at a foreign company being the prima example) can make an Income Tax Return very complicated and therefore time consuming.

Below prices are minimum / nominal fees based preparing a normal tax return without complications,
included is filing the tax return and getting the taxoffice stamp on a copy (required for visa extensions).

  • Employee Income Tax Return (only income from CZ), starting from 3.500 CZK *
  • Employee / Income Tax Return (mixed / foreign income), starting from 7.500 CZK *

Price for a standard, straight forward taxreturn;
extra charges depend on how much accounting work needs to be done in preparation of the taxreturn.
We charge 700 CZK / hour for processing papers for tax returns by an accountant
and 2.000 CZK / hour in case a tax advisor is required.



How to proceed if you want Alexio to do your Tax Return

  • email us about the kind of Tax Return you want,
  • we will email a checklist of required documents and a questionnaire,
  • you bring or send in the required documents - we'll discuss them with you,
  • you will pay a deposit (the price listed above) in cash, by transfer or credit card / Paypal,
  • we process the documents and produce the Tax Return,
  • we will explain the Tax Return and you sign it (or we use an earlier signed Power of Attorney).
  • we will file the Tax Return and send you a stamped paper original + scan.


Back Contact us14/2/2013