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Brno Expat Centre has inform me that your help center can support us with a dedinition how much taxes we will really pay in Czech. Below the…

Brno Expat Centre has inform me that your help center can support us with a dedinition how much taxes we will really pay in Czech. Below the description of our situation. I put all details I think may be relevant. Let me know what you need to know more: We live in France. My husband is French. My husband has revenues as an employee in France. I am Polish, I have no revenues. We have one child 8 months old now. We are married under a French law with a separation of goods what allows us to make a separate tax declarations in France. My husband has received a job offer in Czech from 1st October 2016, I may receive one too but as far it is not sure. (the salary - hrubé mzdy - is known) I would like to understand: Q1) Where we will pay taxes on the income of 2016 ? a) What earned in France will be taxed in France and what in Czech will be taxed in Czech b) In France c) In Czech d) Other ? We do not know yet if he will moove alone to Czech Rep for the test period of first 3 months or if he will bring me with him. Is it relevant for where to pay taxes and the amout of tax to be paid ? Next year, 2017 will be more simple: we live together in Czech Rep. Scenario 1: only my husband has a job in Czech – hrubé mzdy is known Scenario 2: I have a job in Czech as well – hrubé mzdy is known Q2) Moreover, in 2017 we may manage to rent our flat in France so we will have some revenues of it – the revenue amount is estimated. Shall we pay taxes from this revenue in France or in Czech ? Q3) In General, Shall we pay taxes in Czech Rep as a couple or as separate persons? Or maybe we have both possibilities and we can choose the best solution? I would like to know if the additional 7% tax (15% => 22%) is applied a)per family or b)per person or c) maybe per family divided per 2 persons ? I need to find out how much taxes I will pay in 2016 and in 2017 if I move to Czech, in aim to define how much will left. I hope you will help me to find those answers. Thank you very much for any support and Let me know if you need any more information. BR, Elizabeth

elizabeth

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Re: taxes on married international couples

16:59 05.08.2016

Dear Elizabeth. nice to hear that you want to come to work and live in our country. There is many issues which expats have to sort out and taxes…

Dear Elizabeth.

nice to hear that you want to come to work and live in our country.

There is many issues which expats have to sort out and taxes are one of them. The international taxation of expats and similar people is very complicated and varies from case to case so I try to describe your situation only briefly.

First of all we have to specify a tax residency of your husband.

1. If your husband will come to our country and you and your child will stay in France then your husband will be steadily considered a french tax resident. In Czechia he will tax only his income from Czech sources (means his employment). Taxation of all his worldwide incomes will be done in france according to french law.

2. If you and your child will move during year 2016 to Czechia with your husband than the tax residency of your husband will be changed during year 2016 and both parts of the year will be considered separately. In the second part of year your husband will tax his worldwide incomes in Czechia.

2. In year 2017 assuming your famili will live in Czechia you will be obliged to tax in our country all your worldwide incomes inclusive your revenue from apartment leases in France. But perhaps also France will required tax from the revenue because the flat is located in its area. Then we would sort out how to avoid doubble taxation.

In Chechia are employed people taxed separately because of fixed tax rate 15%. The solidary tax 7% as a special type of temporrary taxation is applied for person exceedindg monthly gross salary CZK 108,024 and can't be spread among spouses. But the tax is paid only from amount exceeding the limit CZK 108,024. 

So assuming you will work both then you will be taxed separately.

If you don't work (you have no income) then your husband can apply a special tax relief for you. Your husband will be also entitled to apply a tax relief for your child. These described tax reliefs is entitled apply only Czech tax resident.

I'll be happy to provide you a calculation of your salary based on a real numbers so please don't hesitate to contact me by email.

Best Regards

Nichael

Michael Hajek

Zašlete nám prosím svůj dotaz k problematice daní z příjmů fyzických osob. V nejbližší možné době jej zdarma zodpovíme a naši odpověď zveřejníme na tomto místě. Rádi také zveřejníme Vaše příspěvky a názory k tématům blízkým naší webové stránce.