New duty: personal tax return mandatory also for certain employees

The amendment to the Income Tax Act effective since 2013 introduced a new "solidary income tax increase". This means that personal income exceeding a certain limit is taxed by a higher tax rate.

What is even more important is that all individuals whose 2013 employment income exceeded CZK 1.242 million, thus making them obliged to pay the solidary tax, must file their own personal income tax returns.

The same applies to all employees whose income exceeded CZK 103,536 in one single month (and they paid a solidary tax advance during the given month).

The employer cannot provide such persons with the annual tax settlement, not even if their income was only from one employer.

The personal income tax return must be filed by 31 March 2014; alternatively, you can grant a power of attorney to a tax advisor, which postpones the due date until the end of June 2014.

Should you have any questions, please do not hesitate to contact us.