Solidarity tax – duty to file personal tax returns for 2014
Since 2013, all individuals whose annual income exceed 48 times the average wage (for 2014, this is CZK 1,245,216) are subject to the solidarity tax increase. For 2013, all of these individuals had the obligation to tax their income and submit the income tax returns on their own. The same applied to all employees whose income exceeded CZK 103,536 in one single month (and paid a solidarity tax advance during the given month). The employer of such persons could not settle the annual tax, even if they had income only from employment.
From 2015, there are changes to the Income Tax Act which apply also to the duty to file tax returns for 2014 due to the solidarity tax increase. Now the tax returns for 2014 must be filed only by an employee whose income exceeds the limit for solidarity tax on an annual basis (the limit is exceeded in total for the year), not an employee whose income was burdened by the solidarity tax only during the year. The employer can provide such persons with the annual tax settlement. Other taxpayers must file their own personal tax returns.
The personal income tax returns must be filed by 1 April 2015 at the respective tax administrator. Alternatively, you can grant a power of attorney to a tax advisor, which postpones the due date until 1 July 2015.
