Tax Return 2023 – Tax Deductions

Do you need some information about Tax Return Czech Republic? Such as what tax deductions you may be eligible to in 2023? Then the below article may provide you with some guidance.

Tax base deductions

Providing all legislative conditions are met, it is possible to lower the tax base by so-called tax base deductions. The main tax base deductions are:

  • The total interest on a mortgage or construction saving loan if used to finance personal housing needs
  • Contributions of up to CZK 24,000 made to supplementary pension insurance or life insurance schemes that comply with specific conditions.
  • Gifts made to certain entities for specific purposes (e.g. humanitarian, charity, ecological purposes) if they amount to at least 2% of the tax base or CZK 1,000. The maximum amount that may be deducted is 30% of the tax base.
  • Unpaid blood donation – CZK 3,000 per donation.

Tax discounts

It is possible to lower the tax liability by applying additional tax discounts. The highest and most common applicable discounts are as follows:

  • Taxpayer’s personal tax discount of CZK 30,840.
  • Spousal tax discount of CZK 24,840 if the spouse lives in the same household as the taxpayer and the spouse’s annual income does not exceed CZK 68,000.
  • Tax discount for dependent children; CZK 15,204 for one child, tax discount of CZK 22,320 for the second child, and tax discount of CZK 27,840 for the third and any additional dependent child.
  • Tax discount for kindergarten fees paid, maximum in the amount of CZK 17,300.

We are here to help you with your Tax Return filing, should you wish. Please do not hesitate to contact us.