The article you are about to read is valid for citizens of the Czech Republic. If you work in the Czech Republic but are a citizen of another country, we recommend verifying the information according to applicable laws for foreigners working and doing business in the Czech Republic.
Note down: April 1, 2025 – deadline for filing the tax return, May 2, 2025, if filing electronically.
Even if you’ve done it multiple times, almost every year brings new changes, so it almost never goes smoothly. That’s why we’ve prepared a checklist for self-employed individuals to help you get through this obligation calmly—and ideally, without discovering new gray hairs.
All Systeum members have access to a consultation with an accountant as part of their benefits, including assistance with processing personal income tax returns and invoices.
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Record of All Income
Check whether you have all invoices, cash receipts, etc. Don’t forget about income from rentals or capital assets (dividends, stock sales, bonds, etc.).
Expense Check
If you apply a lump-sum expense deduction, make sure you don’t exceed the limits and that you have chosen the appropriate rate.
The key question is: Can I still apply lump-sum expenses?
In the IT field, the most common lump-sum deduction is 60%. The income threshold for applying lump-sum expenses is CZK 2,000,000, meaning that expenses are limited to CZK 1,200,000 at a 60% rate.
If you keep tax records (i.e., apply actual expenses), make sure you have all necessary receipts.
Have I Become a VAT Payer?
If your turnover in 12 consecutive calendar months exceeded CZK 2,000,000, you automatically become a VAT payer.
A simple explanation: If you exceed the limit in October, you become a VAT payer from December; if you exceed it in April, you become a VAT payer from June, etc.
Do I Need to Register Somewhere?
Yes, online on the Financial Administration portal.
You must register by the 15th day of the month following the one in which you exceeded the limit (i.e., if you exceeded the limit in October, you must register by November 15).
How to Calculate Turnover?
Include: Unpaid invoices that you issued, even if the client paid late or not at all.
Do not include: Sales of long-term assets and services provided to companies where the place of supply is outside the Czech Republic (e.g., invoicing to a Slovak company).
Do I Have Dividends or Profits from Selling Securities or Cryptocurrencies?
The “3-year time test” should be your mantra when selling securities and, recently, also cryptocurrencies. You probably know this already, but check if you’ve sold anything before this period expired.
Note: The 3-year time test refers to the 3-year period between the purchase and sale of securities. If you hold securities for more than three years, you are exempt from tax upon their sale.
If you sold securities before the 3-year period expired, you need to include the income in your tax return—even if you reinvested the entire amount immediately. The only exception is if your total income from such transactions does not exceed CZK 100,000 per year; in that case, you are also tax-exempt.
If you own stocks that pay dividends, don’t forget to include them in your tax return as well.
What Tax Deductions Can I Claim?
Currently, even when applying lump-sum expenses, you can claim:
- Basic taxpayer allowance
- Spousal allowance (if your spouse has a low income)
- Child tax benefits, including bonuses
- Additional deductions (disability, childcare expenses, etc.)
- Tax-exempt items (charitable donations, pension or life insurance contributions, mortgage interest, etc.)
NEW: This year, you can no longer claim kindergarten fees or student tax relief.
What Documents Do I Need for My Tax Return?
Documents for all income sources
Documents for tax deductions:
- Spousal allowance: Proof of your spouse’s income (showing it did not exceed CZK 68,000 per year). Additionally, your spouse must care for a child under 3 years old.
- Child tax benefits: Birth certificates, or proof of study if they are over 18 years old.
- Disability/ZTP allowance: Confirmation of disability pension or ZTP/P card.
Documents for tax-exempt items:
- Charitable donations (confirmation from the recipient organization, church, or foundation stating the amount and purpose of the donation).
- Pension savings/contributions (annual summary from your pension provider showing deductible amounts).
- Life insurance (annual confirmation from your insurance company regarding the paid premiums).
- Mortgage interest (confirmation from the bank or building society on the amount of paid interest).
- Union contributions (confirmation from the trade union organization).
Documents Related to Social and Health Insurance
The income and expense reports for the Social Security Administration (ČSSZ) and health insurance company are submitted after filing the tax return, but it’s good to have everything ready in advance.
Documents for Business Interruption/Termination
If you interrupted or terminated your business activity during the last tax year, you need to provide proof of notification of this change to the Trade and Financial Office.
What Are the Tax Return Deadlines for 2025?
- April 1, 2025 – Standard deadline for submitting a tax return for 2024.
- May 2, 2025 – Deadline for electronic submission.
- July 1, 2025 – Deadline if using a tax advisor.
I Pay a Lump-Sum Tax—Do I Still Need to File a Tax Return?
No, unless one of the following applies to you:
- Besides business income, you have other income exceeding CZK 50,000 per year (e.g., rental income, stock sales, or cryptocurrency transactions).
- You have employment income that was not taxed at source.
- Your business income exceeded CZK 2,000,000 per year (only those earning below this limit can use the lump-sum tax).
- You became a VAT payer.
- You became a partner in a general partnership or a limited partner in a limited partnership (you cannot use the lump-sum tax in these cases).
Final Tip:
Do you know about the tax calculator for the self-employed?
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