Every year in January and early February, HR/payroll teams ask employees to sign two key documents:
Taxpayer’s Declaration (Prohlášení poplatníka daně – often called the “pink form”) – signed for the current year (e.g., for 2026)
Request for Annual Tax Reconciliation (Žádost o roční zúčtování daně) – signed for the previous year (e.g., for 2025)
It’s worth understanding what each document does, because they serve different purposes and in many cases requesting the Annual Tax Reconciliation would be incorrect as you must file your own Czech tax return instead.
1) Taxpayer’s Declaration (Prohlášení poplatníka): why payroll wants it at the beginning of the year
The Taxpayer’s Declaration is the document that allows your employer to apply certain tax credits and child tax benefits already in your monthly payroll.
In practice, this means:
your employer can apply the basic taxpayer tax credit (sleva na poplatníka) monthly, so your monthly tax withholding is lower, and
if relevant, the employer can apply child tax benefits (daňové zvýhodnění na děti) during the year (lower withholding tax and, in some cases, a tax bonus).
Key rule: only one employer per month
You can have the Taxpayer’s Declaration signed with only one employer in the same calendar month.
So if you have two jobs at the same time, you need to choose one employer (usually the main one) for applying monthly credits.
When you sign it
typically when you start a job (during onboarding), and
then it’s updated/confirmed again at the beginning of a new calendar year.
Bottom line: If you are employed, it usually makes sense to have the Declaration signed with one employer so you don’t “overpay” tax throughout the year.
2) Annual Tax Reconciliation (Roční zúčtování daně): an internal alternative to filing a tax return
The Annual Tax Reconciliation (ATR) is a simplified year-end reconciliation of payroll tax withheld from your salary throughout the year.
Important features:
it is done internally by the employer (usually your last employer in the year),
you do not file anything with the tax office in your own name as part of ATR,
it effectively serves as a replacement for a personal income tax return for eligible employees.
If you qualify and request it on time, the employer will calculate the annual result and process any overpayment (refund) through payroll.
Deadline to request ATR
Employees must submit the request for Annual Tax Reconciliation and supporting documents by mid-February.
3) Who can use Annual Tax Reconciliation (and when you must file a tax return instead)
Annual Tax Reconciliation is only possible if you are not obliged to file a Czech personal income tax return.
Typical cases where employees must file their own tax return
You will usually need to file your own tax return if, for example:
you had employment income from multiple employers at the same time (concurrent employment) and the income was subject to advance tax (standard payroll withholding), or
you had other taxable income above the relevant threshold that is not exempt or not taxed by final withholding tax (e.g., self-employment, rental income, certain capital income, etc.).
4) What documents are typically attached to the ATR request
To process Annual Tax Reconciliation correctly, employers usually require:
Confirmation of taxable income from any previous employers during the year (if you changed jobs), and/or
documents proving your entitlement to relevant tax credits and deductions you want applied in the reconciliation (e.g., mortgage interest confirmation, pension/life insurance contributions, donation confirmations, proof for child tax benefit, etc.).
5) Common practical questions
“Should I sign the Taxpayer’s Declaration?”
If you are employed, in most cases yes – because it allows monthly application of key credits (especially the basic taxpayer credit) and can reduce your monthly tax withholding.
“Can I request Annual Tax Reconciliation every year?”
Only if you meet the conditions (especially no concurrent employment with advance tax and no other taxable income triggering the duty to file a tax return).
“What if I miss the ATR request deadline?”
Then the solution is typically to file your own personal income tax return and claim the relevant credits/deductions there.