Annual Tax Reconciliation for Employees / Personal Income Tax Return
Are there situations where you are an employee, meet the conditions for annual reconciliation, submitted documents on time and signed the request, and yet the payroll department cannot include everything you wanted.
This can happen in specific cases where the payroll department cannot verify tax deductibility. A similar situation can occur when you do not submit the documents (or only some of the documents) for the annual tax reconciliation on time, i.e., by February 15.
In such a situation, filing a personal income tax return awaits you. A tax return can also be filed by an employee for whom the annual reconciliation was completed, if they still want to apply other deductible items that they did not manage to submit to the payroll department by February 15.
If you decide to file your tax return in paper form, your absolute deadline was April 1st. The penalty for a late-filed return is 0.05% of the assessed tax. However, if this amount is less than CZK 1,000, the obligation to pay the penalty does not arise. And another piece of good news for latecomers is that if they file an application, there is a chance that their penalty will be reduced or completely waived.
For electronic filing (data box/electronic signature/DIS), the deadline is May 2nd. Electronic filing can be done by anyone via the MOJE DANE portal. There is no need to have a data box or an electronic signature set up. Bank identity, eObčanka, or MojeID is sufficient.
In case of any questions, please do not hesitate to contact us.
Your TaxVision Team
Need help with taxes, accounting, or payroll?
Write us a message and our specialists will get back to you shortly.
You might also like
Autumn… the leaves are falling, companies are planning next year’s budgets, and HR departments are quietly thinking: “I just hope our payroll accountant doesn’t come down with the flu on payday again this year.” You know the feeling. Payroll is one of those things nobody really talks about as long as it works. But the moment it stops working, suddenly everyone is talking about it.
Vacations are slowly winding down, children are getting ready for school, and businesses are returning to their usual autumn rhythm. If you’ve felt for some time that your current accounting firm isn't keeping up, fails to answer your calls, or that your books are held together purely by willpower, you might be thinking: "We’ll just push through until the end of the year and make the change in January."
Thanks to modern digital tracking mechanisms (such as the DAC7 directive), both the European Union and Czech tax authorities now have much greater visibility into the digital space than ever before. The good news is that staying fully compliant isn't rocket science once you know the rules.