fEven individuals who are not entrepreneurs may be required to file a tax return for 2023. Find out whether the obligation to file a tax return applies to you.
When must employees file a tax return?
An employee does not have to file a tax return if the following 3 conditions are met:
The employee had only one employer in 2023 or had several employers in succession – the jobs do not overlap in time,
for all employers, the employee signed a Declaration of the ebay database taxpayer of personal income tax from dependent activity – sometimes called “pink paper” and at the same time
the employee did not have income from Sections 7 to 10 (i.e. from business, capital assets, rent or other income) in total higher than CZK 20,000 .
All three of these conditions must be met simultaneously .
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First condition: Jobs do not overlap in time
The first condition for an employee not to be required to file a tax return is that he or she is employed by only one employer in 2023. If the employer changed during 2023, the jobs are consecutive. It does not matter if there is a time gap between them, but they must not overlap . The exception is the case when withholding tax is applied in the second job . This applies, for example, to work based on an agreement to perform work up to CZK 10,000 per month, unless a taxpayer declaration has been signed with the employer. If you are not sure whether your income is subject to withholding tax, check with your employer.
Example
An employee employed by employer A terminated his employment expanding the brand’s global appeal by agreement on 15 June 2023. He will be taking vacation from 5 to 15 June 2023. At employer A, the employee had a signed taxpayer declaration until June 2023. He joined employer B while he was still employed by his previous employer A, during vacation – he joined employer B on 10 June 2023 and was with him at the end of 2023. He signed a taxpayer declaration with employer B from July 2023. Is the employee obliged to file a tax return for 2023?
Since the employee had two jobs at the same time in the period from June 10 to June 15, 2023, he was obliged to file a tax return for 2023.
Example
The employee is employed by employer A. He has been employed by this employer for the entire year 2023 and has signed a taxpayer declaration with him. In addition, he earns extra income from an agreement to perform work for employer B. The remuneration from the agreement does not exceed CZK 10,000 per month, the employee does not have a signed taxpayer declaration with employer B, and therefore his income is taxed by withholding tax. Is the employee obliged to file a tax return?
The employee is not required to file a tax return. He or she can request an annual tax settlement from employer A. The annual settlement does not take into account the withholding tax paid in employment B. If the employee would like to return the overpayments from employment B that were subject to withholding tax, he or she can voluntarily file a tax return and include income from both employment A and B.
Example Of taxpayer
Second condition: Declaration of the taxpayer of personal income tax from dependent activity
The second condition is that the employee has signed the Declaration of a taxpayer of personal income tax from dependent activity . The declaration can also be signed retroactively, by 15 February 2024 for the year 2023 .
Example
The employee was employed in one job throughout 2023. He thailand data did not sign the taxpayer declaration for 2023 at work and the taxpayer discount was not applied to his wages for January to December. Subsequently, on 10 February 2024.This amount was increased for 2023. Until the end of 2022, the limit was CZK 6,000. The limit does not include income exempt from tax or income taxed by withholding tax . All income is added up to the limit. The amount of income is calculated , not the tax base, i.e. before any expenses are deducted .