Preparing and Filing a 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 income you select on that form.
There are several options to choose from, select the one(s) that best describes your situation.
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 document-intake Consultation (Phone/Skype/Meeting) based on the Questionnaire and Checklist
- Income Check for a Business Visa extension *
- 2 hours * of Admin / Accounting service (3 hours w. employment, 6 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.
- Optional: a business consultation about your business, changes to legislation / taxes, future in CZ
* 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 2 (3 / 6) 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.
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: Document Intake Deadline 1.03 (March 1st), Filing Deadline is 31.03 (March 31st)It is possible to File or Extend a Trade License Income Tax Return for the previous year between 1.1 and 31.03 of the following year.
However, we also need time to process and prepare your Tax Return. Therefore, we need all of your papers and POAs LATEST by 1.03 (March 1st) - if it is later, it is possible / may be necessary to extend the filing (by 3 months).
AFTER 31.03,we can still prepare and file your Tax Return (without extending), but it would be a LATE FILING and the Tax Office will charge a penalty, which will become higher the longer you wait with filing the Tax Return.
See also Extending and Filing an Income Tax Return
Important: The big difference between 2017 and 2018 for Trade License 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 becauseTax / Social / Health contributions may amount to up to 32% of your Revenue and in some cases 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 a tax year / leaving Czech Republic in the middle of a yearFiling an Income Tax Return before the (tax) year is finished is not possible.
The earliest occasion to file is in the following January, 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 before the year end - we just will not be able to process and file the Return until January of the next year, although we will be able to tell you during the year 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.