Poradna

Dear Michael,

according to Act No. 586/1992 the Income Tax, article 2 sec. 3 students are considered as a tax non-residents and have a tax liability applying only to income arising from sources in the Czech Republic. If you find a job, the best way for you is to sign a contract as a DPP (agreement on performance of work), your income should not exceed CZK 10,000 and you are supposed to sign a Declaration of the taxpayer („a pink paper“). Meeting these conditions the taxpayer is not obliged to pay any levies for a social insurance according to Act No. 589/1992 Law on Social Security and State Employment Policy Premiums, article 3 and for a health insurance according to Act No. 187/2006 Sickness Insurance Law article 7a. In principle, you will not pay any tax as a result of the tax credit which lower your tax liability to zero.

Juraj Varhaník