Česká republika l Neotax

FAQ

• 1. I worked in the Czech Republic and paid taxes. Can I get them refunded?
  • Everybody who works abroad and pays an income tax should file a tax return. Under certain conditions, you can refund some of the taxes you (your employer) paid.

• 2. What taxes are paid in the Czech Republic?
  • In the CZ there is only one tax rate for income tax payers - Individual income tax.

• 3. What a “tax refund” means?
  • A refund means that your employer paid on your behalf more taxes than was supposed to, and you can get them back. By filing a tax return, you are actually reporting to the CZ Tax Office, how much you earned as gross income and how much you paid on taxes, while you stayed in the CZ.

• 4. Why some agencies claim that they will refund MORE tax overpayment for you than the others?
  • There is no such a thing as “more refund” on your taxes. Be careful, because this might be a marketing trick to attract you to sign a contract. If a tax specialist does your tax return properly, according to the U.S. tax law, the refund can be calculated in only one possible way! If an agency applies tax deductions that you are NOT entitled to, your refund will increase on one hand (you will get back more money), but you are at a very high risk that you will have to pay it back to the Tax Office.

• 5. How much taxes are paid on your income?
  • There is a flat rate of 15 percent applicable on your salary.

• 6. What documents you need for your tax refund?
  • In order to get your income tax refund in as quickly as possible and to apply for the highest amount, you need to have:

    • Power of Attorney
    • Earning document "Potvrzení o zdanitelných příjmech"
    • A copy of your ID card/passport
    • A copy of your "Potvrzení Pro Rok"/Certification for the tax year = confirmation from your local tax office
    • A copy of your Marriage Certificate (if applicable) and your spouse’s ID
    • If you have any children, a copy of their Birth Certificate (if applicable)
    • A copy of the Proof of school attendance (if your child is older than 18)

• 7. What is a Potvrzení o zdanitelných příjmech?
  • Potvrzeni is the annual summary that you will receive from your employer at the end of the tax year. It shows the total amount you earned from your employer as an income figure and also the amount of tax your employer deducted from your earnings and paid to the tax office. If you did not get it from your employer, we can get the document for you.

• 8. How many years back can I file my tax refund?
  • According to the Czech law, you can go back as far as 3 years from the year in which you apply.

• 9. How long does it take to receive my tax refund?
  • On average it takes 1 to 3 months. This is counted from the time your documents are received by the tax authorities. The actual time may vary on a case by case basis.

• 10. When is the deadline for filing the tax return?
  • Your tax return should be filed at the CZ Tax Office on April 1st at the latest. This means that you have to send your tax return in such way that the Tax Office receives the tax return by 31. 3. You should also pay your taxes by this date. If you do so later than this date, you may be asked to pay a “Failure-to-file penalty” (in case the Tax Office receives your tax return later), or a “Failure-to-pay penalty” (in case you paid the taxes later).

• 11. What are the penalties for late tax return filing/tax paying?
  • 0.05% of the determined tax for each day of delay, but no more than 5% of the determined tax.