Tax Season is Approaching

As we approach tax season, there are several key things to be aware of, especially for entrepreneurs and professionals. Most employees had until February 15 to request an annual tax settlement from their payroll accountant at work. However, it’s important to understand who must file a tax return, how to do it, and the deadlines.

Employees who worked for at least one month last year for two employers simultaneously and had provisional income tax deducted from wages or rewards must file a tax return. Similarly, employees with other taxable income from self-employment, rent, capital assets, or other income higher than twenty thousand crowns annually are also required to file.

In 2023, most entrepreneurs will need to file their tax returns online. The state has automatically set up data boxes for them in the previous year. Exceptions are authors or artists for whom a data box was not established by law. The online tax return can be completed via the “Moje daně” portal. The advantage of the portal is that many details will already be automatically filled in after logging in, and it also offers a series of guides and instructions on how to fill out the rest of the return.

For most employees, dealing with taxes isn’t as complicated as their payroll department handles. They must complete a request for an annual settlement by February 15. However, if they work for two employers simultaneously, they must fill it out themselves. This is also the case for employees who request a refund of withholding tax from a contract for work performed or employees with other taxable income, such as rent, above the legal limit.

Pensioners who earn extra income alongside their retirement pension, whether from employment, business, rent, or capital assets, may also need to file a tax return. However, if their employer deducts tax installments during their extra work, they may be entitled to a tax refund and, in the end, do not pay any tax on the income of natural persons.