Summer Jobs in the Czech Republic: How Are DPP and DPČ Taxed?

As summer approaches, many foreigners living in the Czech Republic explore short-term job opportunities—especially students and part-time workers. These are often structured under two special types of contracts: DPP (“Agreement to Perform Work”) and DPČ (“Agreement to Complete a Job”). Both are popular among employers for seasonal jobs, but each comes with different tax and insurance implications.

Let’s take a closer look at what you need to know before you accept a summer job in the Czech Republic.

What Is a DPP (Dohoda o provedení práce)?

• Max. hours: 300 hours per calendar year with the same employer

• Taxation:

  • If your gross monthly income does not exceed CZK 11,500, the employer typically withholds a 15% withholding tax (no need to file a tax return unless you request it).

  • If your income exceeds CZK 11,500, you enter the regular tax regime—your income is subject to advance tax.

• Social and health insurance: Not paid if under CZK 11,500/month. Over the threshold, contributions apply.

What Is a DPČ (Dohoda o pracovní činnosti)?

• Max. hours: Can be more regular, up to half of full-time weekly hours (20 hours/week)

• Taxation:

  • Advance income tax is deducted from any income, unless you qualify for tax credits.

  • You may need to file an annual tax return, especially if you have more than one source of income.

• Social and health insurance: Paid if your monthly income exceeds CZK 4,500 (2025 threshold). Both employee and employer pay contributions.

Can I Apply for Tax Credits?

If you sign the “Pink Form” (Tax Declaration) with one employer, you may be entitled to:

• Basic personal allowance (CZK 30,840/year)

• Child tax benefits (if applicable)

📌 Note: You can only apply these with one employer at a time.

Do I Have to File a Tax Return?

You must file a Czech personal income tax return if:

• You had multiple jobs simultaneously with advance taxation.

• You had other sources of income exceeding CZK 50,000.

• You want to claim back overpaid taxes or unused tax credits.

💡 Filing may be beneficial if you only worked part of the year, or had low overall income.

What If I’m a Foreigner or a Student?

• EU/EEA students: Generally eligible for the same benefits and tax treatment as Czech citizens.

• Non-EU nationals: Check your visa conditions; working may be limited or require prior approval.

Important: Even if you’re a student, earning income may affect your residency status, health insurance, or need for local registration.

Summary: Key Takeaways