Information about Annual Tax Clearance 2017

Yearly accounting of the tax advances is carried out by last payer of tax, in whom the taxpayer claimed
tax exemptions or the provision of tax bonus on the basis of a signed „the Declaration of a personal
income taxpayer".

The yearly accounting of the tax advances may request the taxpayer, who received wages from only
one payer, or the more payers had gradually and signed by all of his payers „the Declaration of a
personal income taxpayer". If the taxpayer does not ask for the yearly accounting of the tax advances,
the tax liability is satisfied by deducted advances in the normal months of 2017.

In other cases, payers are required to declare the income tax return by individuals at the tax
authorities in their place of residence.

The yearly accounting of the tax advances also may request a taxpayer, which in 2017 had increased
tax advance by solidary tax, but his total annual income did not exceed the limit for the application of
the solidarity tax increase (1.355.136 CZK 2017). If the total annual income exceeded the limit, the
employee cannot request the yearly accounting of the tax advances and is obliged to declare the
Income tax return by individuals. Confirmations about taxable incomes for the year 2017 will be issued
by the employer automatically, without employee´s request and handed over upon signing the
"Declaration of Taxpayer" (during the scheduled dates with ADP).

Taxpayers, who receive the old-age pension and for that reason did not receive the basic tax
exemption for the year 2017, will receive this basic tax exemption for the year 2017 during the yearly
accounting of the tax advances.

Documents required for the tax annual settlement payments to tax

1. Duly completed a written request from a taxpayer, which is part of the declaration to tax and is,
listed in the Part III. of the Declaration of a personal income taxpayer:

a) A taxpayer indicates whether in the previous tax year, i.e. year 2017, received wages from only
one payer, or even received from other payers gradually.

b) Furthermore, the taxpayer may apply tax deductions for items, see below:
 The provision of the gift - an original document needs to be submitted to grant a donation or
an original confirmation of blood donation, (married couple can newly apply the gift given
from the shared property one everything or by the proportionate part. The limits for making
a donation assess both spouses separately.
 Exemption to the dependent wife of CZK 24.840, which in 2017 had not her own income in
excess of CZK 68,000. Request for the exemption needs to be filed out in the tax statements,
 as an evidence needs to be submitted a copy of marriage certificate (confirmation in CZ term
“oddací list“),
 New tax exemption for the child placed in a pre-school educational facilities in the amount of
max. 11.000 CZK yearly. To apply the exemption it is necessary to fill the amendment to the
„the Declaration of a personal income taxpayer" and deliver the confirmation from the
childcare facilities for the pre-school children.
 In the amount of the credit interest paid on a loan for year 2017 (CZK max. 300,000 per year)
as proof needs to be submitted an original validation from the bank or savings bank with the
actual amount. Other required documents or questions will be answered individually via the
CRM ticket,
 In the amount paid by the taxpayer contribution to pensions for year 2017 (minimum CZK
12,000 Max. CZK 24,000 per year), as an evidence needs to be submitted an original
confirmation from pension fund about actually paid contributions for year 2017 and a copy of
the contract,
 In the amount paid by the taxpayer contribution to the private life insurance for year 2017 (up
to CZK 24,000) as a document needs to be submitted an original confirmation from the
insurance company about actually paid contributions for year 2017 and a copy of the contract.

2. An original confirmation about taxable incomes and deductions on tax advances for the reporting
period in 2017 from all previous employers. All employees will automatically receive confirmation of
taxable income for 2017 during the signing of the Tax Declaration by 15th February 2018.

Please, pay close attention to the details regarding the tax allowances and tax credit and the
documents needed as you will not receive any reminder. If the documents are not delivered by
February 15, 2018, the requested tax credit will not be done.