Termín pro oznámení osvobozených příjmů se blíží

The deadline for reporting exempt income is approaching

A tax payer, who pays the income to a non-resident taxpayer, which is subject to a Czech withholding tax (WHT), is obliged to notify the tax authorities.

for the simplification applies to income in the form of interest, dividends, and royalties that are exempt from WHT or not subject to taxation in the Czech Republic under the respective international treaty. In these cases, the taxpayer is obliged to submit the notification only on an annual basis, by January 31 of the following calendar year.

Interest income, which in aggregate for one recipient does not exceed CZK 300,000 per calendar month is not reported. In the case of royalties and dividends, the notification report must always be submitted, regardless of the amount of exempt/non-taxable income.

In practice, it is necessary to fill in the form "Notification of income paid abroad" (you can find it HERE in the section Choosing an electronic form, Withholding tax). Within one form, it is possible to report exempt income of the same type paid to one non-resident taxpayer.

For completeness, we would like to add that the above brief comment cannot replace a detailed tax assessment of a specific situation.

If you have any questions,, please contact the author of the article or the EY tax team with whom you regularly collaborate.

Author:

Jana Kovářová