TAXES

USEFUL INFO:

 

- Personal and corporate income tax return

Income tax returns (personal and corporate) must be sent to the tax office before the end of  March. If you have a certified tax advisor, the period may be extended till the end of June. If you are a company or an expat („zahraniční osoba”), you must  use double-entry bookkeeping and this means that you have to add complete financial statements (Balance sheet, Profit and loss account and Footnotes) as attachements to your income tax return.

The standard price for preparation of a Corporate income tax return is 6000 CZK.  The price excludes accounting work. Price can be lower for empty companies or higher for more complicated businesses.

The standard price for preparation of a Personal income tax return is 3500 CZK. This price includes the calculation of tax from your business, your employment, rent of property and other business; calculation of tax deductions and claiming tax benefits.   The price excludes accounting work. The price can be lower if you have only a simple business. – see below.

We have special price for very small businesses. The price, 1500 CZK, covers your annual accounting and preparation of Personal income tax return. You can use this offer if you have maximum of 20 issued invoices per year and you use the standard deduction for expenses.

- VAT

Our price for the VAT return is 1000 CZK and for EU Sales list is 350 CZK. The price does not include accounting work.

VAT in the Czech Republic is 21% for most services and goods. (reduced rate is 15% for goods and services named in „Příloha 2 a 3 Zákona o DPH“).

Who must be registered as VAT payer:

• Any person or company with turnover above 1 mil CZK in any 12 month

• Any person or company who buys goods in the EU in amount over 326.000 CZK

• Any person or company who is provided service by a person or company from the EU\

• Any person or company who provides services to EU VAT payer (Exact conditions are in paragraph 94 of VAT law)

You have to file a VAT return monthly if you are VAT payer. Any VAT-registered s.r.o. or person sending invoices to VAT-registered clients based in another EU country is obligated also to file „Souhrnné hlášení” = EU Sales list, with the details of your customers and amount of services (or goods) provided to them.

 

- Person identified for VAT

You have to register as a Person identified for VAT {Identifikovaná osoba} at the tax office  if:

  • You provide services to a VAT-registered client based in another EU country;
  • You acquired goods from another EU country in amount over 326,000 Czk during one calendar year;
  • You received services from persons other than CR VAT-registered persons
  • You received goods that require installation or building from persons other than CR VAT-registered persons.

If you are registered for VAT, you have to file a VAT Return monthly. After two years from your registration, you can file a request to change the period to quarter.

If you invoice to another EU country, you also have to file a monthly EU Sales list.

A VAT payer is obliged to file a VAT return and an EU Sales list by the 25th  day of the month following the taxable month.

 

- Other taxes

1) Property tax

This tax is calculated according to type of building/flat, square meters and address. The deadline for the tax return is 31.1.. If you are the owner of a property on 1.1., you have to file the tax return and pay the tax. We will prepare this tax return for you for 2500 CZK.

A property may be subject to three types of taxes: • Property Tax Return This tax is calculated according to type of building/flat, square meters and address. The deadline for tax return is 31.1.. If you are the owner of some property at 1.1. of the previous year, you have to fill the tax return and pay the tax. • Income Tax Return This tax must be paid if you rent your property. The deadline is 31.3. and you will report this in your Personal Income tax return together with your Income tax. • Transfer Tax The Transfer Tax is 3% from the value of property you sold and is to be paid by the seller. The value of the property has to be set by an expert.

2) Road tax

Road tax is paid for all company cars. You have to register your company car at the tax office before you start to use it for business.  Our price for registration of your car at the Prague tax office  and preparation of road tax return is 600 CZK per hour.

Road Tax for a company car is between 1000 and 4000 CZK annually (depending on the engine size and pollution catagory). The tax should be paid quarterly or in one lump sum. Every kilometr in a company car must be registered in the Mileage report. You have to register: date, time, starting and ending address, starting and ending tachometr, purpose of the trip (client), date and time.