| The deadline for income taxes has passed, but did you know that for employees and trade license holders it is still possible to claim missed tax benefits from 2009, 2010 and 2011? |
Filing Employee Income Tax Return 2011 / 2012 in Czech Republic
Expat Accountant files czech Income Tax Returns and claims tax benefits for employees
Alexio.cz offers accounting services, calculate tax deductions, claim tax benefits and file Income Tax Returns for foreigners working in Czech Republic.What we see every year is that many employees miss out on tax benefits because the company they work for do not file a tax return at all, or leave out deductions for the employee (23.640 CZK), spouse (24.840 CZK) and children (11.604 CZK / child). In a typical 2-child family, these benefits are +/- 70.000 CZK annually!
Not filing also means missing out on tax reductions for paid mortgage interests, paid life insurance, gifts - few companies automatically assign these benefits to the (foreign) employee, so in order to claim them you will have to file a taxreturn.
It is even possible to correct years 2009 and 2010 and claim missed tax benefits of these years.
Tax Returns of 2008 and before will not be taking in consideration by the tax office.
Read about claiming (lost) tax benefits here:
Important: Employee Income Tax Return - File or Extend LATEST Monday 02.04.2012
It is possible to file an Income Tax Return for 2011 between 1.1.2012 and 31.03.2012. However, this year 31/3/2012 is a Saturday, and therefore it is still possible to file in time on Monday 2/4/2012.In case you do not manage 31.03.2012 (2/4/2012), read about extending / postponing filing the tax return here:
Is filing a personal Income Tax Return necessary?
Yes, in order to claim tax deductions / benefits
If your only income is from czech employment, and the company prepares your taxreturn including all possible tax deductions, then there is no need to file seperately.However, 90% of the companies do not file at all (they are not obligated) or only apply your personal tax deduction of about 24.000 CZK, and do not take in consideration spouse and children and other possible tax deductions, so you end up paying 10.000s of CZK too much tax every year.
It is even possible to correct years 2009 and 2010 and claim missed tax benefits of these years.
Tax Returns of 2008 and before will not be taking in consideration by the tax office.
Yes, in order to save taxes on foreign income
In case you have other sources of income (dividends, capital gains, foreign income, rental income) or you started halfway during the year your job as employment and worked some months abroad at an other company, you will have to file an Income Tax Return, if you are tax resident in Czech Republic.Declaring (foreign) income in Czech Republic instead of the country where you made this income will most likely result in far less taxes to be paid.
An employee Income Tax Return will help for extending the business visa of your spouse!
Due to the new, much more strict visa regulations directors and trade license holders must have proof of income (+/- 9.500 CZK NET for one person), and proof of business activities: bank statements, invoices and expenses.One of the most important things the Foreign Police (Ministry of Interior) asks for is the taxreturn.
If one can't show enough income (czech or foreign), it will be hard to extend a business visa.
If you are a couple, then your employee income will be taken in consideration for the extension of the business visa of your spouse - therefore it is important to have a Income Tax Return or at least bankstatements / an overview from your employer stating your earnings in 2011.
Pricing for an Income Tax Return Services
It is unfortunately not possible to make an exact offer before studying your papers, because every case is unique and unprocessed accounting and international aspects (employment at a foreign company being the prima example) can make an Income Tax Return very complicated and therefore time consuming.Below prices are minimum / nominal fees based preparing a normal tax return without complications,
included is filing the tax return and getting the taxoffice stamp on a copy (required for visa extensions).
- Employee Income Tax Return (only income from CZ), from 3.500 CZK *
- Employee / Income Tax Return (mixed / foreign income), from 7.500 CZK *
price depends on how much accounting work needs to be done in preparation of the taxreturn.
We charge 600 CZK / hour for processing papers for tax returns by an accountant
and 1.500 CZK / hour in case a tax advisor is required.
Discount:
In case you bring the taxreturn yourself to the authorities and have them stamped, you get a 500 CZK discount.How to proceed if you want Alexio to do your Tax Return
- email us asap about the kind of Tax Return you want,
- we will email a checklist of required documents,
- you bring or send in (by mail or electronically) the required documents,
- we give / send you a deposit invoice,
- you pay the deposit in cash, by bank transfer or Paypal,
- we process the documents and explain the Tax Return,
- you sign the Tax Return (or we use an earlier signed Power of Attorney).
- After receiving the rest of the fee, we will file your Tax Return.