Notification of exempt income

Hlavní informace

If you, as a taxpayer of personal income tax, have received income exempt from personal income tax (an exception is income that the tax administrator can determine from registers or records to which it has access and which are published on the official board and in a manner allowing remote access), you are obliged to report this income to the relevant tax administrator.

Týká se vás to pokud

The reporting obligation applies to you as a taxpayer if you have received income that is exempt from personal income tax and is higher than CZK 5 000 000 – the income is assessed individually. 

Kdy službu řešit

As an individual, you can declare exempt income no later than by the end of the deadline for filing your tax return for the tax year (within 3 months after the end of the tax year under the Tax Code) in which you received the income. This notification period generally applies even to taxpayers who are not required to file a tax return.

The deadline is extended if you are obliged to file a tax return at the same time as the notification, and the tax return is filed electronically (the deadline is extended to 4 months after the end of the tax year) or through a tax advisor (the deadline is extended to 6 months after the end of the tax year). 

Vyřízení služby

Co potřebujete pokud službu řešíte

The notification does not have a prescribed form, so it is written in free form. The Ministry of Finance has issued possible models of optional forms, which are published on the website of the Financial Administration.

Kde a jak službu řešit

Notification of exempt income may be made in documentary form or orally on the record. The completed notification can then be submitted in person or sent by post to the locally competent tax office (territorial office) according to the place of residence.

Doplňující informace

Jaký má služba benefit

Reducing the administrative burden on taxpayers when starting the process of proving the origin of assets.

Možnosti odvolání

There is no appeal against this service.

Sankce

The provision § 38w of the ITA, which is related to § 38v of the ITA, regulates the penalty for failure to notify or late notification of exempt income. As a taxpayer, you are liable to pay a penalty for failure to report exempt income if you fail to file a notification of exempt personal income in the amount of:

• 0.1% of the amount of unreported income if one complies with this obligation without being requested to do so,
• 10 % of the amount of unreported income if the taxpayer complies with this obligation within an alternative deadline after being requested to do so, or
• 15% of the amount of unreported income if the taxpayer fails to comply with this obligation within the alternative deadline.