Preparing and Filing 2017 Trade License / Self-Employment Income Tax ReturnAlexio.cz offers accounting services, claims tax deductions and files Trade License Income Tax Returns for for foreigners working on a trade license (žívnostenský list) in Czech Republic.
What is the fee for Preparing and Filing a Tax Return?The Order form will display the fee according to the type of Tax Return you select on that form.
There are several options to choose from, select the one that best describes your situation.
The basic fees are: 5000 CZK for a basic Trade License Tax Return, 6500 CZK for combined Employment and Trade License, and 6500 CZK for Trade License + other sources of income
What is included in the fee for a Tradelicense Income Tax Return?Included in the fee are the following elements:
- a Questionnaire and a Checklist so you know what documents to prepare
- a Consultation (Phone/Skype/Meeting) based on the Questionnaire and Checklist
- Income Check for a Business Visa extension *
- 3 hours * of Admin / Accounting service (4 hours w. employment, 7 hours w. foreign employment),
- calculation of Tax Benefits,
- explanation of the entire Tax Return,
- we file the Tax Return at the Tax Office for you (so no need to do this yourself),
- we file the overviews for the Social Office and Health Insurance for you (so no need to do this yourself),
- You get a copy / scan of the Tax Return.
* Let us know if your Business Visa needs to be extended; we check if with your income you can get a Visa Extension + give you suggestions how to fix this. We know how to prepare papers for the Foreign Police.
Admin / Accounting service in excess of 3 (4 / 7) hours will be charged according to our standard pricelist.
It is possible to do everything remotely, without visiting our office. You can send in your documents by mail / email / Dropbox / Google Drive share. In this case we will need a signed paper original Power of Attorney for filing.
After Filling in the Order Form, you will be able to download a Questionnaire and a Checklist that will explain which documents you will need to provide to us.
Important: The big difference between 2017 and 2018 for Revenue over 1 M CZKStarting 2018, the 60/40 limit has lowered from 2M CZK to 1 M CZK. THIS IS ONE OF THE BIGGEST CHANGES IN RECENT TIMES, which affects all Revenues over 1M CZK, but Revenues between 1M CZK and 2M CZK the most. The higher Revenues (3M, 4M and up) will only see a change of a few %. Everybody will pay more Income Tax, Social Charges and Health Insurance.
- We highly recommend to book a Business Consultation if you have a Revenue over 1 M CZK, since Tax / Social / Health contributions may amount to up to 30% of your Revenue and in some case increase as much as 50% compared to what you were paying in 2017 (!)
Important: The good news for Trade License Revenue in 2017For the Revenue of 2017, it is still possible to use the old rules (that were valid in 2016) - which means: using real expenses OR using the 60/40 rule up to 2 M CZK (but no tax benefits, other than the personal one) OR use the new 2018 taxrules (60/40 up to 1M CZK but WITH tax benefits for spouse and children)
Important: Filing before the end of the year 2017Filing an Income Tax Return for 2017, before 2017 is finished is not possible.
The earliest occasion to file is after the tax year 2017 has ended, even if you will leave Czech Republic before the year's end. Also complete de-registration from Tax / Social / Health systems will be possible only after filing the Income Tax Return.
It is possible to already order the Tax Return now - we just will not be able to process and file the Return until 2018, although we will be able to tell you whether it makes sense to file and if so, whether you would be entitled to receive anything back from the Tax Office.
Important: Even if you have paid years Social-, Pension- and Heath contributions - there is no way to claim any of those back, even not with a filed Income Tax Return.
Important: LATE FILING after 31.03.2018It is possible to file a Trade License Income Tax Return for 2017 between 1.1.2018 and 31.03.2018.
However, we also need time to process and prepare your Tax Return. Therefore we kindly ask you to order and send in your documents as early possible, preferrably in January or February, but no later than 16.3.2018 else we cannot guarantee the Tax Return will be prepared and filed in time.
AFTER 31.03.2018 we can still prepare and file your Tax Return, but it will be a LATE FILING and the Tax Office, Social Office and Public Health Care will charge penalties, which will become higher the longer you wait with filing the Tax Return.
If you are not able to gather the papers in time for filing - You can can ask for an extension., see below:
Important: Minimum Income for Business Visa ExtensionIn order to extend a Business Visa successfully, you must have enough income. This is for 1 person 9.800 CZK + minimum social charges (1.900 CZK) PER MONTH, so about 12.000 CZK / month.
Many people think that if they invoice 12.000 CZK / month, they will be fine. They will not be fine. It is not enough.
The 12.000 CZK is the minimum Tax Base. But because of the 60/40 rule, only 40 % of the Revenue is the Tax Base. In order to get a Tax Base of 12.000 CZK, one must invoice 2.5 (100 / 40) times as much, which is 30.000 CZK monthly or 360.000 CZK annually.
If you did not invoice at least 360.000 CZK, we highly recommend to book a consultation so we can find a solution to increase your Income, because too little Revenue inevitibly means no Business Visa extension!