How to pay taxes in the Czech Republic as a non resident

Conditions

First of all, you should know that different conditions apply to residents and non-residents. In fact, residents or individuals who have been living in the country for more than 183 consecutive days in a year have to pay tax according to their global income, except if when their vital interest remains abroad.

Non-residents, for their part, have to pay tax according to their income from local sources. If they receive a single income, tax will be deducted at source. These conditions also apply to independent entrepreneurs having registered at the Czech Tax Registry.

Income tax

Income tax is deducted at source every month by the employer at a rate of 15%. The latter will also make an annual declaration and proceed with adjustments if necessary.

Other types of income have to be declared at the Finance Administration. Tax then has to be settled before March 31st of the following year.

Note that if you make 48 times (or higher) than the amount of the average salary in the country, you will need to pay a tax surcharge of 7%.

Good to know:

If you have sought the assistance of a tax adviser, you may declare your income at the latest on June 30.

A deposit system is set up following the first tax return. The amount of tax to be paid and the frequency then varies. In fact, instalments are calculated according to the amount of tax paid in the last tax return.

Good to know:

E-filing services are also available in the Czech Republic. However, the website is available in Czech only. Find more information in the useful links listed below.

Tax year

The tax year is different from the calendar year. However, companies are free to determine their tax year and relating conditions. In all cases, the tax year goes over 12 months.

Procedures

Tax has to be settled in cash at the nearest Finance Administration office to your place of residence. A receipt will then be issued. You can also pay tax by money order, bank transfer or at the Czech National Bank.

Other taxes

Other types of taxes, such as corporate tax and value-added tax also apply in the Czech Republic. Corporate tax, for instance, applies at a rate of 19% while value-added tax (VAT) applies at the rate of 21% and the rate of 14% in the case of basic commodities.

Road tax, that is the vignette, amounts to about 45 to 92 euros (CZK 1,200 to CZK 4,200) per year for individual vehicles and between 70 euros to 1,700 euros (CZK 1,800 and CZK 44,100) for commercial vehicles.

Finally, property tax varies according to the type of property, its location and use.

Useful links:

Ministry of Finance
Regional Financial Administration
Regional Financial Administration ' Personal income tax
DaÅový portál ' Tax declaration portal