Taxes

6.1 Decrease of limit for payment of 23% of the advanced payment on taxes for NP income taxes 

From 1.1.2024, the limit of income from which the employee pays a 23% tax is changing from 4 times the average wage to 3 times the average wage. In 2024, a 23% income tax on income over CZK 131 901 will be paid (in 2023 this limit was CZK 161 296). 

6.2 Obligation to submit a tax return 

Effective from 1.1.2023, the limits of taxable income decisive for the obligation to file a personal income tax return have changed:

- pursuant to Section 38g (1) of the ITA, the limit is increased to CZK 50 000 (until now this limit was set at CZK 15 000)

- pursuant to Section 38g (2) of the ITA, the limit is increasing to CZK 20 000 for taxpayers with income from dependent activities, who have additional income according to Sections 7 to 10 of the ITA (until now this limit was CZK 6 000).

The new limits are valid for the 2023 tax return. 

6.3  Increased limit for exemption of pensions from taxation 

Regularly paid pensions are exempt from income tax if the annual amount does not exceed 36 times the minimum wage. In 2023, the limit was CZK 622 800, while for 2024, the limit is CZK 680 400.