Expatriate tax ebook - Czech Republic

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
Expatriates from non-EU countries are required to apply for a Work and Residence Permit. For some states (12 countries) Green Cards have been introduced that have a dual character.
No obligations are set for expats from EU member states. Various duties (especially reporting duty) arise to the Czech employer.

Employment visas
A Czech employer may employ non-EU nationals, unless a Czech citizen may be employed in the position concerned, and a non-EU national obtains a Work Permit for the position given, and a Residence Permit.

Grant Thornton Czech Republic can help with arranging the Work and Residence Permit as well as arranging the Green Card.

Tax returns and compliance
The liability to file the tax return depends on the individual circumstances of the expat. Generally, if a tax non-resident has only one income from a Czech employer, the liability to file the tax return does not arise. Natural persons receiving more types of income or Czech tax residents with income from a source abroad are obliged to file a tax return.

There are two tax return filing deadlines; March 31 of the next year for most individuals and June 30 for individuals represented by a tax advisor. Taxes are due, in full, by March 31 / June 30.

A penalty may be charged for the late submission of tax return (0.05 % from the tax assessed for each day of delay up to the amount of CZK 300.000)

Tax year
The CR tax year runs from 1 January to 31 December.

Income tax rates
15 % (for individuals)

Sample income tax calculation

Sample income tax calculation 2011	CZK
Annual gross income	2 000 000
Benefits-in-kind:
company car for private use*	120 000
fuel paid by employer	50 000
accommodation over limit**	258 000
private (or pension) insurance paid by employer ***	26 000
other benefits-in-kind
Total taxable income	2 454 000


Employer mandatory health insurance and social contributions (34%)	605 635
Max. base of assessment	1 781 280

Tax base rounded	3 059 600

Tax 15%	458 940
The basic tax relief	23 640
Tax liability	435 300


* Calculated as 1% of the purchase price of the car for each month of private use
** There is a tax exemption to a maximum amount of CZK 3,500 in one month
*** An annual total sum of up to CZK 24,000 is tax exempt


Notice: The tax paid by the employer has to be grossed up

Information about Czech Republic:

Last updated 13 June 2011

This information has been provided by Grant Thornton Czech Republic, a member firm within Grant Thornton International Ltd, and is for informational purposes only. Neither Grant Thornton Czech Republic nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.

Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms. Disclaimer

Contact us

For further information on expatriate tax services in the Czech Republic please contact Ondrej Stedry.

Related websites

The Czech Ministry of Finance
The Czech Commercial Register

Related publications

Publications of IB Grant Thornton Czech Republic

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