Every employee or temporary worker has come across a pink form called a taxpayer's declaration. What is it for? How to fill it in?
The Personal Income Taxpayer Declaration Form (Formulář prohlášení poplatníka daně z příjmů fyzických osob) is a pink form issued by the Financial Administration. It is a form that sets out the employer's method of taxation. On the basis of the signed form, the employer deducts tax from the employee's wages, taking into account any discounts claimed by the taxpayer.
Anyone who is employed by an employer can sign the taxpayer declaration. It does not matter whether the employee is a student, self-employed or retired. Everyone has the right to sign this form.
The taxpayer declaration can only be signed for one employer! If an employee has more than one employer, he/she can only sign the declaration with one of them. If he/she does not sign the declaration with the other employer, the other employer will withhold tax from his/her wages without any benefit.
Note: A self-employed person can only sign a taxpayer's declaration if, in addition to the business, he is also employed as a main or secondary employee or as a temporary worker under a work performance agreement or a work activity agreement. If the self-employed person is not also an employee, he/she cannot sign the taxpayer's declaration for the business only. The taxpayer discount will be reflected on his tax return automatically.
The form is used to claim tax deductions:
The taxpayer declaration can be signed at any time during the year. If the employment relationship lasts more than one year, you need to sign a statement for each year. In order for the taxpayer's credit to be recognized for the month of January, the declaration must be signed with the employer no later than February 15. The taxpayer's rebate will be reflected in the January paycheck.
If an employee doesn't sign a taxpayer declaration, their employer won't reflect the tax credits in their pay. It will automatically deduct the full 15% withholding tax. The withheld tax can be partially refunded when the tax return is filed or in the annual tax return.
Completing the form correctly can be a hassle for employees. The form consists of 5 parts:
Part 1 covers the tax year and the details of the employer (taxpayer) and the employee (personal details), Part 2 covers tax credits for the taxpayer, disability, disabled and student, Part 3 focuses on children and their personal data, Part 4 is the signature section, which must be signed by the employee, Part 5 covers changes that occurred in the tax year.
Need help with your taxes or declaration?
Niki, a student, works for the employer OnlinePřiznání in July and already works for the employer NeoTax in August. She can therefore sign the pink form for each of them. In addition, if she works on a work agreement and her gross salary is up to CZK 10 000, her net salary will not be different from her gross salary and Niki will not lose a penny of her salary. However, if she does not sign this form, she would have to pay a withholding tax of 15%.
If Niki had worked for the employer OnlinePřiznání for a whole year and had signed the pink form with the employer and wanted to earn extra money in the summer with the employer Neotax, she could not sign the form again. So even if she earned less than £10,000, her wages would be withheld by the 15% tax.