Taxes and Accounting

Millions of Czechs file personal income tax (PIT) returns each year. However, many of them do not know how and when to submit it correctly. That's why we have summarised the most important rules on how to proceed. Read the most important facts: When to file your tax return? Who files a tax return? When is income tax due? What…

There are over 500,000 registered legal entities in the Czech Republic, but 20% of them are not actually doing business. The number of "dormant companies" has declined in recent years, but their owners should beware. What about the tax return for an inactive company with no income? Find out all about zero returns. Business tax returns: what if…

The year 2025 brought new rules for the taxation of cryptocurrencies and introduced a value and time test for their tax exemption. Make sure you keep proper records of your income from cryptocurrency transactions - such as holding, exchanging or selling - to be sure you know if and how to pay taxes on them. Cryptocurrencies are a big topic and,…

Choosing a car for a company is not the same as choosing one for your family. While with a family car you will be mainly interested in comfort, consumption or safety, with a company car it is all about how it will affect your taxes, VAT deductions and running costs. The car does not belong to you, but to the company. We'll introduce you to how to…

No entrepreneur can avoid registering for value added tax (VAT) when sales are higher. The obligation to pay VAT depends on the amount of turnover. We will advise you how to calculate it correctly. Who is obliged to pay VAT? According to Section 6 of the VAT Act, a taxable person (simplified as an entrepreneur carrying out economic activity)…

What does it mean that a company or self-employed person is a VAT payer, how to register for VAT and when is it worthwhile? Find out the answers to these questions in the article. Who is a VAT payer? A VAT or value added tax payer is a legal or natural person who can purchase goods or services at a "discount" for the purposes of their…

Running a business as a sideline is an ideal option for anyone who wants to earn extra money for their studies, employment or even maternity leave. Compared to your main gainful activity, it brings a number of advantages - you pay lower taxes and often do not have to pay social security and health insurance contributions. What are the other…

Amendments to the law change many of the rules that have been in place for performance work agreements (PWAs). This popular way of earning extra income is not only subject to central registration, but also to new rules and a cap on levies. Join us for a look at the main changes affecting PPAs in 2024/2025*. What is a…

Have you started a business and your company was established in the last 3 months of the year? Postpone your first corporation tax return until next year! We will tell you how to proceed. Who can extend their accounting period? If your company was established between 1 October and 31 December, you can apply to the tax office for an extension…

You pay one amount each month, which includes social security, health insurance and income tax. The flat-rate tax has relieved you of annoying paperwork so you don't have to worry about tax returns. But don't rejoice prematurely - it doesn't always apply! Find out which exemptions to look out for. Flat-rate tax and tax returns - when to…

The flat tax promises less administration for businesses from 2021 - but it will only pay off for some. The following lines will help you find out if you are one of them. You'll also find out how much to pay for each band, all the terms and conditions, deadlines and how to sign up for the flat rate tax. What is a flat-rate tax? The flat-rate…

In addition to the salary, interesting work and a relaxed team, company benefits contribute to employee satisfaction. In addition, they will also help you with recruitment. However, setting up benefits translates into the tax burden of the company and the employees. Take a look at the different types of benefits and their tax implications to…

While some voluntarily register for VAT, others want to avoid the VAT regime - therefore, when they exceed the turnover threshold for compulsory VAT registration, they prefer to set up a new company and charge from scratch. Find out why this is an inappropriate practice. Article content: When does a company become…

Do you know what your employee is entitled to when you send them on a business trip and what you must not forget? Find out under what conditions an employee can go on a business trip and what expenses are involved. What is a business trip? A business trip is nothing more than the legislative designation of the colloquial term business trip. The…

Determining tax residence can be confusing – whether you’re a Czech working abroad or a foreigner working in Czechia. Discover the criteria that will help you know where you should be paying income tax. General Rules for Tax Residence It sounds inviting – you find a country with an interesting social or tax system and choose to start your business…

When looking for ways to lower taxation, athletes often toy with the idea of changing their tax domicile. However, such a change is not possible for everyone and will only bring real savings to some. Find out under what conditions an athlete can benefit from a change in tax residency without unnecessary risk. The key to taxing…

The minimum wage is not only the lowest possible remuneration for work, but also affects other amounts. Find out how it works, who sets it, how to calculate the correct minimum wage per hour for different types of jobs and what changes to prepare for from 2025. What is the minimum wage and how is it set? Minimum wage means the lowest allowable pay…

The fundamental change to the Accounting Act will lead to amendments to a number of accompanying laws. One of them is the Income Tax Act (ITA), which should undergo a complete transformation. Find out how the terminology and tax depreciation rules you have been used to will change. Planned changes to the Income Tax Act The amended Income Tax Act…

All companies registered in the Commercial Register, associations, societies, institutes or foundations must publish their accounts. It tells about the company's management, its financial stability and its ability to stand in the future. Find out what it contains and why, and how to navigate through it. What are financial statements? …

Do you pay royalties abroad? And are you sure who is the actual recipient? Find out when you pay the full amount of withholding tax on royalties and when you can reduce it on the basis of double taxation. What are royalties? In the Czech environment, royalties are defined by the Income Tax Act (§19 of the Income Tax Act). Such…