Everything you need to know before filing your Czech tax return in 2025

Tax season is approaching. With all the paperwork involved, it’s easy to feel overwhelmed, regardless if you are a long-time expat or new to the Czech tax system.

We asked TMF Group, which specializes in comprehensive accounting and tax services that ensure compliance with local and international standards, to help break down the key things you need to know before filing your 2024 tax return.  

A tax return must be filed by anyone whose annual income, which is subject to personal income tax, exceeds CZK 50,000. This includes employees, self-employed individuals, pensioners and students with multiple part-time jobs or self-employment income.

There are a few exceptions:

a) You only have employment income from one employer or more employers successively, but not simultaneously with signed tax declaration(s). This amount must not exceed CZK 20,000 per year. 

b) You only have income from abroad that’s exempt from taxation in the Czech Republic.

If either of these exceptions apply to you, then you aren’t required to file a Czech tax return. However, you always have to file the tax return if you receive employment income from previous years, or you show a loss. No limit applies.

You can ask your employer for your tax reconciliation if this job is your only source of income or if you have additional income from other sources not exceeding CZK 20,000 per year, and you sign a tax declaration confirming this is true.

You will need to file on your own if you are a Czech tax non-resident and want to apply for a tax allowance for a dependent child or non-working spouse.

A tax resident is anyone who owns or leases a flat or house in the Czech Republic or lives in the country for at least 183 days during the relevant calendar year. We recommend discussing your tax residency status with a tax authority or a tax advisor.

As a Czech tax resident, you need to declare your worldwide income including wages, salaries, business profits, rental income, interests, shares received or sold and any other income generated both within and outside the Czech Republic.  

Czech tax non-residents also have to declare their income but only on income with a source in the Czech Republic. 

You can avoid double taxation by filing a tax return with the Czech tax office and applying a tax credit or exemption of income taxed abroad in accordance with double tax treaties between foreign countries and the Czech Republic. You can find the list of valid tax treaties on the Ministry of Finance website.

If you want to file on your own, start by gathering all the necessary documents. This includes a certificate of taxable income from your employer (Potvrzení o zdanitelných příjmech), bank statements and any receipts for deductible expenses. You can then fill out the appropriate tax form and submit it to the local tax office or electronically via the Tax Authority's website.

Financial Offices offer template forms in English (Personal Income Tax Return| Registration) including instructions to help foreigners better understand the details and content of individual tax form templates. However, you need to fill in the official tax forms in Czech before submitting them. If you don't feel comfortable with the process, your best bet is to cooperate with a tax advisor or a company that specializes in helping expats with tax filings. They will use their expertise to guide you professionally through the process.

If you are employed and fulfil the conditions for an annual tax reconciliation, you can request your employer to process your forms by Feb. 17, 2025. The legal deadline for filing paper tax returns is April 1, 2025. If you file electronically, the deadline is extended to May 1, 2025, and if you use a certified tax advisor, the deadline for filing your tax return is July 1, 2025.

When filing your taxes, you will also need receipts and invoices for deductible expenses (i.e., donations, mortgage interest, pension, and life insurance contributions). You may qualify for additional deductions if: