Annual tax returns and financial statements in the Czech Republic

Which annual reports you must file in the Czech Republic

OSVČ and individuals

Every year an OSVČ files a tax return (daňové přiznání k dani z příjmů fyzických osob) and then reports to the social security administration (ČSSZ) and health insurer. Foreigners who had income in the Czech Republic and were not covered by automatic withholding by an employer must also file a return.

Key deadlines:

• 1 April — paper filing;
• 1 May — electronic filing;
• 1 July — when filed through a tax adviser, if the power of attorney was submitted by 1 April.

Reports to ČSSZ and the insurer are due within a month after the return is filed. We confirm the exact dates each year and put them in the client’s calendar.

s.r.o. and other legal entities

The company prepares financial statements (účetní závěrka) — balance sheet, profit and loss statement and notes. It then files a corporate income tax return (daňové přiznání k dani z příjmů právnických osob) and deposits the documents with the commercial register (sbírka listin) so they become public.

Typical deadlines are 1 April, or 1 July when a tax adviser is involved. The financial statements must be approved by the general meeting of shareholders and then delivered to the register within the legal time limit. Special rules apply to some companies, for example those subject to audit.

What happens if you are late

The tax office charges a late-filing penalty — a percentage of the tax for each day of delay (with a minimum amount), and the registration court can sanction a company that does not file its financial statements. An unfiled return may also trigger a tax audit and an assessment by the officer, which is usually higher than the real tax.

How we prepare your reports

1. We collect documents and reconcile income and expenses with bank statements.
2. We choose the expense method and apply deductions (children, mortgage, pension insurance, donations, etc.).
3. We calculate tax and contributions and agree the payment amounts with you.
4. We file everything electronically and track the confirmation.
5. We remind you of payment deadlines and the preparation for next year.

If you have not yet set up your business, start with OSVČ registration or company formation.