In effect, income up to CZK 50,000 is not taxed. But be careful: it is not that simple. This threshold does not apply to employment or business income, nor to cases involving a loss. To cut a long story short, it applies only to rental income (Section 9) and exceptional income (Section 10). Section 10 income also has a CZK 30,000 limit.
For example , you need not file a tax return if your only income was CZK 3 thousand a month from letting a garage and CZK 10 thousand from selling surplus fruit from your orchard. Total annual income was 12*3,000+10,000=46,000 CZK, so you need neither file a return nor pay tax.
If this was your only income, it would actually make no difference whether you filed a return: you would pay no tax either way. In practice, this simply reduces administration. 😊
This threshold also applies to self-employed people paying flat-rate tax, who can receive occasional income of up to CZK 50,000 without dropping out of the flat-rate tax scheme.
If you are unsure, do not hesitate to get in touch and we will look at it together. 🙂