Every year, the beginning of April is connected to the obligation of submitting the (personal or corporate) income tax declaration. If you are a self-employed person, you are also obliged to submit overviews of incomes and expenditure for social and health insurance.

These obligations apply to taxpayers, for whom the tax declaration is not prepared by a tax advisor or who are not subject to obligatory audit. On the following lines, we would like to draw yours attention to important deadlines and context, so that you could prevent possible sanctions.

Income tax 

If you are submitting the income tax declaration (for personal of corporate income tax), there is a statutory deadline for submitting it within 3 months after the taxable period has ended, at the latest. The deadline for submitting the tax declaration is 1 April 2019.

In case the taxpayer has a statutory obligation to have his financial statement audited or a tax consultant is preparing the tax declaration for him based on a power of attorney, the tax declaration is submitted within 6 months after the end of the taxable period. In these cases, the deadline for submitting the tax declaration is 1 July 2019.

Another option is to request prolongation of the deadline for submitting the tax declaration by 3 months by the respective tax administrator.

In case income that is subject to taxation abroad is also subject to taxation, the tax administrator may in justified cases prolong it up to 10 months after the end of the taxable period.

A certain advantage is, too, that if the deadline is prolonged for any of the above-mentioned reasons, this also has an influence on prolongation of the deadline for payment of the respective tax liability. Another solution for postponing payment of the tax is to request permission of payment by instalments or tax deferment from the tax administrator.

If the deadline for submitting the tax declaration or for payment is not met, it is necessary to expect sanctions from the tax administrator. A certain rescue is represented by the so-called protective period, which is 5 workdays after the deadline (for payment, it is one day shorter, though), during which the tax administrator will not impose any sanctions.

Social insurance of self-employed persons (OSVČ)

A person, who performed a self-employed activity for at least a part of the calendar year, is obliged to submit an overview of incomes and expenditure from self-employment to the respective social security administration. This overview must be submitted within one month from the deadline for submitting the tax declaration at the latest.

If the tax declaration is not prepared by a tax consultant for the self-employed person, the person is obliged to submit the overview for the year 2018 by 2 May 2019 at the latest. If a tax consultant is preparing the tax declaration for the self-employed person, the person is obliged to substantiate this

fact to the social security administration by 30 April 2019. The person is then obliged to submit the overview for the year 2018 by 1 August 2019 at the latest.

The underpayment of insurance for the year 2018 that follows from the overview is due within 8 days after the overview has been submitted.

Health insurance of self-employed persons (OSVČ) 

A self-employed person is obliged to present the overview to the respective health insurance company within one month from the deadline for submitting the tax declaration for the year 2018 at the latest, that is by 2 May 2019. The self-employed person is obliged to substantiate the fact that a tax consultant is preparing its tax declaration to the respective branch of the health insurance company by 30 April 2019. The person is then obliged to submit the overview for the year 2018 by 1 August 2019 at the latest.

The underpayment of insurance for the year 2018 that follows from the overview is due within 8 days after the overview has been submitted.

Reporting exempt income

If you are a payer of the personal income tax and you received exempt income in the year 2018, which is higher than CZK 5,000,000, you are obliged to announce this to the tax administrator. This announcement needs to be submitted to the tax administrator within the deadline for submitting the tax declaration, which applies to you.

In this case, too, it is necessary to beware of sanctions. There is a fine impending for failure to announce exempt income, set by fixed percentage. You can find closer information about what income is subject to reporting in our article “Even exempted income needs to be reported”. 

In case you are interested in consultation regarding this area, we are able to help.

Jan Tahal & Marie Rudolfová