What is the Certification for the Year and how to fill it in correctly

The so-called Certification for the Year from the tax authority for the income tax return (Potvrzení pro rok zahraničního daňového úřadu) can be a bit of a hassle, so in this article we've answered the most common questions and put together a clear guide on how to fill it in correctly.

Why does a foreigner in the Czech Republic need this Certification?

The certificate for the year (Certification for the Year from the tax authority for the income tax return, in Czech: Potvrzení pro rok zahraničního daňového úřadu) serves as confirmation that his income in the Czech Republic makes up at least 90% of your total income, and so he is entitled to the children's or spouse's allowance. Except for one section, he fills it in himself and takes it to the tax office of the country where he had the minimum income (max 10% of all income).

In the Czech Republic, he can only claim the spouse discount if the spouse's income does not exceed CZK 68,000 per year. He/she will only qualify for the child tax credit if the children actually live in the same household with him/her and his/her income exceeded CZK 103,800 (the amount applies to the 2023 tax return).

Who issues the Certification? How to obtain it?

The form is validated by the tax authority of the country where the taxpayer has lower income by completing section 4.

Example:

Hans Miller is from Germany. He works in the Czech Republic as a project manager. He also has income from Germany, but it is not more than 10% of his worldwide income. How can he claim tax credits if he has a wife on maternity leave and a 2-year-old child?

Hans also attaches a signed Certificate from the foreign tax authority to his tax return.

How to fill the Certification correctly?

Section I - Hans fills in this section with details of himself, his income abroad and his address abroad.

Section II - In this section you will fill in the details of your wife and also her income abroad.

Section III - In this section, Hans fills in the information (name, date of birth and length of cohabitation) of the children who lived in the same household with him and for whom he is claiming child tax credit and also signs a declaration that the information given is true and complete.

Section IV - This section will be completed and signed for Hans by the foreign tax office.

Do you need help completing your Confirmation or tax return? Contact us.