Personal income tax :: BELL Consulting

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Rental income received by a relative

14:09 11.03.2024

My close relative owns an apartment in Czechia, and wants to support me financially by giving me the income from renting out the property. If the…

My close relative owns an apartment in Czechia, and wants to support me financially by giving me the income from renting out the property. If the rental income is deposited directly into my bank account (i.e. the rent money would be sent to me instead of the owner of the property), will that create any tax obligations for me (given that the tax for the rental income is already paid by the owner)?

Nick

Answer to 20

Re: Rental income received by a relative

23:23 11.03.2024

Hello Nick, a donation from close relatives is excluded from taxation in Czech. So it depends on a type of your relation. The taxation depends…

Hello Nick,

a donation from close relatives is excluded from taxation in Czech.

So it depends on a type of your relation.

The taxation depends also on your tax domicile.

Michael

Michael Hajek

Doubts about tax domicile

16:29 19.04.2023

Hello, my name is Nuria Gutierrez, I am Spanish but I have been living in Brno since September. I worked in a company where they didn't provide me…

Hello, my name is Nuria Gutierrez, I am Spanish but I have been living in Brno since September. I worked in a company where they didn't provide me with information about paying taxes and I thought that the only viable option was to apply for Tax Domicile. In the middle of the process I hesitated and did not complete the documents requested by the Ministry of the Interior. Now I am going to start working for a new company and there is a problem as they have called me saying that the ministry of the interior has told them that they are missing documents from me. Should I complete the tax domicile or is there a way to cancel the process? What can it affect if I do or don't do it in my new job? Thank you, Regards.

Nuria

Answer to 19

Re: Doubts about tax domicile

14:39 21.04.2023

Dear Nuria, regarding to your tax domicile certificate. You shouldn’t ask Ministry of the Interior for the document. The document shall be issued…

Dear Nuria,

regarding to your tax domicile certificate. You shouldn’t ask Ministry of the Interior for the document.

The document shall be issued by local Tax Office in Brno so also your application, questionnaire and documents shall be delivered to the office. I don’t know your address so I can’t be more specific.

Your employer can require you for the tax domicile certificate if you ask him for:

- annual tax reconciliation

- a monthly tax reliefs above the basic personal one (e.g. tax relief for children etc.)

- your employer sorts out your Czech personal tax return

Otherwise your employer doesn’t need your tax domicile certificate.

For the other questions I’ve got lack of information.

If you’d need a help in the matters please contact us personally.

Best regard

Michael Hajek

Exchange rate for share purchase

10:57 07.02.2023

In March 2022 I purchased some stock awards from my employer (private US company). These were purchased at a lower price than the fair market…

In March 2022 I purchased some stock awards from my employer (private US company). These were purchased at a lower price than the fair market valuation of the company, so I need to pay income tax (§6) on the difference between purchase price and fair market value. The purchase was carried out in USD but to calculate the difference for tax I need to convert this to CZK. What exchange rate should I use for this conversion - the exchange rate on the day of purchase, the exchange rate applicable for March or the uniform exchange rate applicable for 2022? (The latter uniform exchange rate is the most unfavorable).

James

Answer to 18

Re: Exchange rate for share purchase

11:24 07.02.2023

Dear James for the calculation you can choose between using a daily exchange rate on the date of purchase (published by Czech National Bank) or…

Dear James

for the calculation you can choose between using a daily exchange rate on the date of purchase (published by Czech National Bank) or uniform exchange rate valid for whole year 2022 (published by Czech Ministry of Finance)

Best Regards

Michael Hajek, Tax Advisor

Michael Hajek

Cryptocurrencies and stocks

19:49 25.10.2022

Hello, I have heard that in case of income which doesn't exceed 30 000 KC gross (from Cryptocurrencies and stocks) I am exempted from the tax. …

Hello, I have heard that in case of income which doesn't exceed 30 000 KC gross (from Cryptocurrencies and stocks) I am exempted from the tax. Could you please also confirm if the loss should be declared? Is is possible to send declaration online? Thanks a lot, Marta

Marta

Answer to 17

RE:

18:24 27.10.2022

Hello Marta, the limit CZK 30,000 doesn’t apply to you. You don’t have to file your income tax return if your total annual income didn’t exceed CZK…

Hello Marta,

the limit CZK 30,000 doesn’t apply to you.

You don’t have to file your income tax return if your total annual income didn’t exceed CZK 15,000.

If you had an income form employment than you don’t have to file your income tax return if your other annual income didn’t exceed CZK 6,000.

The income from stocks trading (not crypto trading) is excluded from taxation if your total annual revenues (means total sales or turnover, not a profit) didn’t exceeds CZK 100,000.

If you made a lost from your trading, than you have to file your tax return.

Your tax return can be filed electronically if you have electronic signature or digital identity.

Michael Hajek

taxing proceeds from property sale

09:21 05.01.2022

Hello, last November we sold an apartment with my partner (we each owned 50% of the apartment). We owned the apartment for just over two years. My…

Hello, last November we sold an apartment with my partner (we each owned 50% of the apartment). We owned the apartment for just over two years. My partner then used part of the money from the sale to pay out a mortgage on the house we live in (he is the sole owner of the house and the mortgage was under his name). The remaining part of the money from the sale of the apartment is in my bank account. What is the best way to optimise the tax payment on the proceeds from the sale? thank you in advance for your help!

Beata

Answer to 16

Re: taxing proceeds from property sale

17:05 06.01.2022

Dear Beata, your whole income should be exempt from taxation if you have lived there for more than two years just before selling. Only a part of…

Dear Beata,

your whole income should be exempt from taxation if you have lived there for more than two years just before selling.

Only a part of your income used for a purchase of next housing will be exempt from taxation if you have lived there less than two years just before selling.

For a final assessment of your case I’d need more information. Please feel free to contact us.

Michael Hajek

tax advisor No. 1328

Michael Hajek

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Rental income received by a relative

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taxing proceeds from property sale

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