Distinguishing tax residency is an important part of processing annual tax reconciliation. According to Section 38g(2) of the Income Taxes Act No. 586/1992 Coll., as amended, only Czech tax residents may claim additional tax rebates such as donations, interest on life insurance, pension insurance, mortgage interest, and tax rebates for children, spouses, or preschool expenses.
Even a tax non-resident may request annual tax reconciliation; however, they may only claim the basic taxpayer tax rebate.
If you are still unsure whether you are a Czech tax resident or what documents you may need to provide, do not worry — this article will explain everything.
Conditions for Tax Residency
You are considered a tax resident of the Czech Republic if you meet at least one of the following conditions:
- You hold Czech citizenship
- You have a permanent residence in the Czech Republic (whether rented or owned)
- You stay in the Czech Republic for at least 183 days per year
- Your centre of vital interests is in the Czech Republic — for example your partner, children, friends, or work ties
I Believe I Am a Tax Resident, but I Do Not Have Czech Citizenship
If you do not hold Czech citizenship and wish to claim tax rebates other than the basic taxpayer tax rebate, you must provide either a confirmation of permanent residence, or a tax domicile certificate.
Tax Domicile Certificate
A tax domicile certificate is a document issued by the Czech tax authority or by the relevant foreign tax authority. The document must be requested from the tax office in your place of residence, and its issuance may take up to 30 days. The domicile certificate is subject to an administrative fee of CZK 100.
It is not possible to state exactly what the Czech tax administrator will require in order to assess tax residency, as there is no unified methodology or legal regulation. In most cases, however, a copy of your passport or Czech ID card, a copy of your accommodation agreement or extract from the Land Register, and a copy of your employment contract or trade licence are required.
Finally, it should be noted that if you do not wish to claim any tax rebates other than the basic taxpayer tax rebate, there is no need to address tax residency at all.
Your Payminator Team.
