Taxation thresholds
If you earn 50.000 Kč or more from currency conversions during the year, you must include these earnings as other income in your income tax return. One small advantage is that you can offset foreign exchange losses against these gains. In practice, you therefore tax what you have earned on the conversions (i.e. only the overall foreign exchange gains are taxed).
Foreign exchange gains are exempt from tax up to the 50 000 Kč limit, but this does not apply to transactions on a regulated market (FOREX) or exchanges in accounts used for business activities.
So be careful
Anyone who regularly exchanges larger amounts should therefore take care, as exchange differences can accumulate over the year.
If you think this new development might affect you, remember to mention it to your dear accountant when discussing your tax return for the previous year. 🙂
Are you unsure whether this applies to you too? Get in touch and we will look at your situation. 🙂