1. INCOME TAX

2. Payroll hours worked tariff food Average salary Tariff+bonus+holiday
Tax 15 %
holiday
bonus
Net salary
Social and health insurance

3. Employment
Contract
Form „Prohlášení poplatníka daně z příjmu fyzických osob ze závislé činnosti“ – statement about income tax (credit for a taxpayer)

4. Concepts I. Gross wage – tariff + personal evaluation + (bonus)
Social insurance – it is paid monthly
employee 9,5 % of gross wage
employer 25 % of gross wage
Health insurance – it is paid monthly
employee 4,5 % of gross wage
employer 9 % of gross wage

5. Concepts II.
Tax – 15 % from gross wage + social and health insurance paid by employer
Example:
CZK
gross wage
1 000
social insurance
employee
9,5 %from = 95
employer
25 % from = 250
health insurance
4,5 % from = 45
9 % from = 90
amount for calculating the tax
= 1 340
tax
15 % from = 201
net wage
=659

6. Rules tax and insurance is paid monthly for employees by the employer
Every person, who has an income, can apply „tax rebate (discount)“ – it is CZK per month and it is not divided
Other discounts:
Student – for every month of study 335 CZK
Wife/husband without incomes – CZK per month
Children – CZK per month first child, CZK per month second child and CZK per month third and other child

7. Tax rebate (discount)
A basic tax rebate, which can be applied by every taxpayer, is a taxpayer's discount. The tax will be reduced by CZK per year, while we are entitled to apply the full discount, regardless of whether we have earned it any time. We will apply the discount in the tax return for income tax.
The benefit will be used whole, regardless of whether we have earned a whole year or only a part.

8. Resident
1. Issue ¹Resident of one Contracting State ª Denotes for each of these contracts any person who is subject to the legal provisions of this Statute in this statist of tax residence of your domicile, residence, management center or any other similar criteria. This statement does not, however, include a request a person who is subject to taxing in this database only on the basis of the income from the sources in this station or property there. 2. If a natural person is subject to the provisions of paragraph resident of both Contracting States shall be its determined in the following way: (A) it is assumed that that person is a resident of that State in which there is a flat; If she has flat in both stations, it is assumed that he is a resident that State, to which the person and the Relationships; B) if it is not possible to determine which one zhis person has his or her lifelong livelihoods, or if there is no permanent apartment at the given stadium, it is anticipated he is a resident of that state in which usually delays.

9. Pension insurance
Persons participating in this insurance are provided in life situations such as old age and invalidity. At that time, the claimant is entitled to the payment of pension benefits.

10. Pension insurance

12. Income tax return I.

13. Income tax return II.

14. Income tax return III. Line 6 PZP Line 1 PZP Line 22 +23 24 840 CZK
Line 24 rounded down to whole hundreds
15 % from line 32
CZK
Line 33 – line 36 (can´t be less than zero)

15. Income tax return IV.
Line 9 PZP
Line 33 – line 52

16. Example Employment May 1 to December 31 Gross wage 120 000 CZK
Social and health insurance CZK
Tax CZK

17.
40 800
24 000

18. Income tax return – example I.
40 080
24 000
24 840

19. Income tax return – example II.
24 000

20. Important links
= contract´s overview

21. When to submit tax return form
Compulsory for person, who has during the year more than one employer
Compulsory for person, who has incomes from other acitivities
business
lease