Czech Republic Taxation of Employee

Many of the expenses incurred by either an individual or a company are tax deductible on the assumption that they are supported by the appropriate documents. Tax relief is granted in certain circumstances.
The relief may be expressed as a tax deduction when the relief is granted by reducing the amount of income that is taxable or by the grant of a tax credit when the benefit is deducted directly from the tax due.

• Depreciation of fixed assets (see above)
• Business - related insurance premiums (property insurance and so forth).
• Employer's contributions to social and medical benefits, as well as the employee's contribution to an old-age pension which is deductible to a limit.
• Provisions in accordance with the various statutes, such as provisions to an insurance company against foreseeable claims and more.

Permanent residents are entitled to the following annual relief:

• A taxpayer's annual exemption - CK 30,840.
• Exemption for a non-working wife - CK 24,840.
• Child allowance- 15,204 for the first child.
• Exemption for those receiving a 100% disability allowance - CK16,140
• Exemption for high school / university students - CK 4,020.
• Contributions to the public benefit, to 15% of the tax base.
• Interest on mortgages (subject to certain conditions).