Employer Tax Contributions

Tax Type	Rate	Base
Social Security	24.8%	Employee's gross salary (capped)
Health Insurance	9%	Employee's gross salary (no cap)
Personal Income Tax (PIT)	15% / 23%	Employee's gross salary plus employer social security and health insurance contributions

Filing & Compliance

• Employers must register for payroll tax, social security, and health insurance within 8 days of hiring their first employee.
• Monthly payments for withheld income tax, social security, and health insurance are due by the 20th of the following month.
• Employers must file an annual tax reconciliation by March 20 of the following year.

Employee tax deductions in the Czech Republic are primarily handled through payroll deductions by employers, covering income tax, social security, and health insurance contributions. Employees can also claim certain tax reliefs for expenses like pension contributions, life insurance premiums, and continuing education.

Income Tax

• Tax Rates: A two-tiered system exists with a 15% rate for income up to CZK 1,676,052 annually (CZK 139,671 monthly), and 23% for income exceeding this threshold as of 2025.
• Tax Reliefs/Credits:
  • The basic tax relief is CZK 30,840 annually, as of 2025.
  • Additional tax relief is available for contributions to specified products like supplementary pension insurance, private life insurance, and other long-term investment products up to a maximum of CZK 48,000 annually, as of 2025.

Social Security and Health Insurance

• Social Security: Employees contribute 7.1% of their gross salary towards social security, covering pensions, sickness insurance, and unemployment benefits. The employer also contributes 24.8%, calculated on the gross salary. These rates are valid as of 2025. The maximum annual assessment base for social security contributions is CZK 2,234,736 as of 2025.
• Health Insurance: Employees contribute 4.5% of their gross salary towards health insurance. The employer additionally contributes 9%, also calculated on the gross salary. These rates are valid as of 2025. There is no annual cap for health insurance contributions.

Other Deductions and Benefits

• Meal Allowance: Employers can contribute up to CZK 123.90 per day towards employee meals, which the employers can fully deduct as an expense as of 2025.
• Non-Monetary Benefits: Health-related benefits up to CZK 46,557 annually are exempt from tax and contributions as of 2025, while other leisure-related benefits are exempt up to CZK 23,278 annually as of 2025. Amounts exceeding these limits are subject to taxation and contributions.
• Donations: Tax deductions are available for donations up to a certain limit. For example, donations related to the Ukraine crisis have a higher deduction limit, which was extended until 2027.
• Tax Return Filing: Tax returns are typically filed by the employer for employees, and by the individual if the income exceeds CZK 15,000 in the calendar year. The general deadline is March 31, or June 30 if filed by a tax advisor.