Annual reconciliation of income tax advances from dependant activities

Jan. 11, 2019 Czech Republic

With the arrival of 2019, it is necessary to ensure that the form, the Declaration of the taxpayer liable to personal income tax from dependent activities is signed by employees who wish to claim tax allowances in terms of the new year. For the year 2019, the single tax rate remains at 15 %. When calculating personal income advances, the amount is increased by a solidarity tax surcharge of 7 % from income exceeding 130,796 CZK a month.

Monthly tax allowances (credits)

(remain the same as for 2018)

a) per taxpayer 2 070,-

b) disability pension recipients of level I. and II. 210,-

c) disability pension recipients of level III. 420,-

d) holders of ZTP/P card (severe health disability) 1 345,-

e) systematic preparation for future employment 335,-

In the course of 2018 the tax credit for children rose.

Monthly tax credit per one child 1,267

Monthly tax credit per second child 1,617

Monthly tax credit for a third and any other child 2,017

Those employees who do not claim tax allowance or credit do not sign the Declaration of the taxpayer liable to income tax for 2019. Please note that in terms of more employments, the tax allowance or tax credit may be applied only with one employer. The deadline for employees to claim the tax allowances this year is 15 February 2019.

The monthly allowances/credits may be claimed through pages 1 and 2 of the pink Declaration of the taxpayer or on a new form valid from 2018.

Required documents for claiming tax allowances and credits

  • Disability

Decision on grating disability pension, documents of pension payments (a copy).

  • Study

Confirmation of systematic preparation for future employment (an original).

  • Child tax credit

Confirmation from the employer that second spouse does not claim the tax credit (or possibly a proof of the amount the second parent claims), copies of birth certificates.

Children of full age (majors) - Student Status Certificate (original).

The same forms may be used for annual tax reconciliation making that claim by 15 February 2019 at the latest. Pages 3 and 4 of the Declaration of the taxpayer shall serve this purpose or on a new form valid from 2019. Please see the below mentioned advice and recommendations related to the annual tax reconciliation.


In term of the tax year end of 2018, we would like to provide you with information regarding the annual reconciliation of personal income tax from dependent activities.

First of all, let us clarify some terminology – it is necessary to distinguish between annual tax reconciliation and tax return, which in practice may sometimes cause difficulties.

Tax return – submitted by employees directly at the relevant Tax Office according to their permanent residence (by 31 March). Employees are obliged to submit the tax return provided they meet the following conditions stated in ZD (Income Tax Act) (see the information below).

Annual reconciliation – carried out by an employer. Its purpose is not to further burden those employees, who besides their income from employment have no other taxable income, with submitting tax returns. Annual tax reconciliation request represents employee’s entitlement not an obligation.

In addition, we also provide a summary related to the annual tax reconciliation. It is particularly designed for employees who need to consider whether or not to request the annual tax reconciliation, or whether they are entitled to request it. The information may also be used by the HR specialists (personnel) to assist their employees with the annual reconciliation request.

Are you interested in how the legislative changes will specifically affect your company and your employees? Do not hesitate to contact us at any time to learn the details.

Czech Payroll Team ASB