Czech employees are grappling with the documents they must provide their employers to lower their taxes for the previous year. Changes approved by legislators as part of the government’s consolidation package may have caused some confusion.
In the annual tax settlement, for instance, nursery school fees and spouse deductions can be claimed for the last time. “To claim nursery school fees, you need to deliver a confirmation from the nursery school and, for a spouse deduction, a declaration of honor,” explains Gabriela Ivanco, a tax advisor at Mazars.
In the settlement for the year 2024, which will be submitted next year, the spouse deduction can only be claimed if the spouses are caring for a child younger than three years. For nursery school fees, there is a tax deduction of up to 17,300 crowns for each child attending preschool facilities. The spouse deduction can amount to up to 24,840 crowns.
Moreover, for severely disabled individuals requiring a guide (ZTP/P certificate), the deduction can be as high as 49,680 crowns. For the spouse deduction, the decisive income should not exceed 68,000 crowns per year. This limit includes, for example, income from employment, maternity benefits, sickness benefits, pensions, or unemployment support. However, it excludes parental and state social support benefits, material distress aid, or scholarships.
In addition to these tax deductions, deductible items are subtracted from the base from which the tax is calculated. For example, contributions to pension insurance and supplementary pension savings or life insurance can be up to 24,000 crowns. And for mortgage and housing loan interests, it can be up to 300,000 crowns depending on the date of property acquisition.