Income (and expenses)
The first thing your accountant will want to know is what income you received in 2024. An income tax return distinguishes 5 categories of income — employment, self-employment, dividend income, rental income and other income.
The easiest income to document is income from employment. Your employer will issue a Certificate of Income, which you simply pass to your accountant.
For income from self-employment, the foundation is an income register — most business owners keep one (often without realising it) in their invoicing system. It lists all invoices issued and the dates they were paid. As a self-employed person, you only pay tax on income credited to your account or paid in cash during 2024.
The second consideration is how you claim expenses in your return. There are two options: expenses actually incurred, or expenses claimed as a percentage (known as lump-sum expenses). For some business owners the choice is clear, but others need to compare both options and choose the more advantageous one.
Clients most often document dividend income with a statement from their investment platform. Take care if you have a DIP (long-term investment product). A DIP works through stock-market investments. So even if no dividend reached your bank account, some may have appeared in your DIP — this dividend income must also be taxed. 🙂
To document rental income , your accountant will need similar documents to those for self-employment: income records and, where appropriate, expense records too.
A fairly wide range of income falls under other income :
| Income from: | What to provide |
| sales of shares | investment-platform statement (the accountant needs purchase and sale prices) |
| sales of cryptocurrencies | investment-platform or wallet statement (the accountant needs purchase and sale prices) |
| sale of a car I owned for less than 12 months | purchase agreements for buying and selling the car |
| sale of property | purchase agreements for buying and selling the property |
| tax recapture on early termination of life or pension insurance | tax returns for the past 10 years or since you first started claiming this deduction |
| sale of electricity to the grid (applies to owners of their own generating installations, typically solar panels) | income statement from the distributor |
| one-off assistance or a one-off rental (it must not be a regular or long-term activity) | the document in which you agreed to provide the assistance (for example, a simple contract) and proof of when you received the income |
Tax credits and deductions
Most of you qualify for some credits or deductions. Let us look at them all in a clear table :-).
| Credit / deduction | Amount of credit / deduction | Conditions | What to provide |
| Basic taxpayer credit | CZK 30,840 | you only need to be a Czech tax resident | nothing 🙂 |
| Spouse
credit |
CZK 24,840 | – your spouse's income for the whole year was below CZK 68,000 (maternity benefit and gifts received count; parental allowance does not)
– your spouse must be caring for a child under 3 |
Your spouse's declaration of income and the child's birth certificate |
| Child tax credit | 1st child: CZK 15,204
2nd child: CZK 22,320 3rd and each subsequent child: CZK 27,840 |
the child lives in your household and is under 18, or under 26 if studying; only one parent can claim | I am claiming
– confirmation from your partner's employer that they are not claiming the credit; if they do not work, a declaration is sufficient – the child's birth certificate or, where applicable, proof of custody – for children aged 18–26, also confirmation of the child's studies The other parent is claiming – I must give them confirmation from my employer or a declaration |
| Tax credit for children with a ZTP/P disability card | 1st child: CZK 30,408
2nd child: CZK 44,640 3rd and each subsequent child: CZK 55,680 |
– you care for a child with a ZTP/P disability card
– the same conditions as for the child tax credit |
The same documents as for the child tax credit, plus proof that the ZTP/P card was granted |
| Personal disability tax credit | 1st- and 2nd-degree disability: CZK 2,520
3rd-degree disability: CZK 5,040 ZTP/P card holders: CZK 16,140 |
if you receive a disability pension and hold a ZTP/P card, you qualify for both credits | Confirmation of an award of disability pension or a ZTP/P card |
| Donations (including blood or bone marrow donation) | at least CZK 1,000 in total,
up to 30% of the tax base |
the donation must be for a charitable purpose and made to a non-profit organisation in the EU or to Ukraine | Donation receipt from the organisation |
| Mortgage interest | up to CZK 150,000 | mortgage for your own home (not a rental!) | Confirmation of interest paid from the bank; in the first year, also the mortgage agreement and title deed |
| Supplementary pension insurance,
Life insurance, Long-term investment product (DIP) |
up to CZK 48,000 in total
(for supplementary pension insurance, only the amount above the threshold for the state contribution can be claimed in the return) |
the statutory conditions must be met; the contract usually states whether a deduction is available | Confirmation of premiums paid from the insurer and, in the first year, the relevant contract too |
If you have discovered that you will need to file a tax return, do not delay finding an accountant. 🙂 We will be happy to discuss your situation in an online consultation. Be aware that our capacity for preparing 2024 income tax returns is filling up quickly.