Direct tax system – personal income tax (basic examples)
Example 1.
Johan is Austrian entrepreneur with permanent residence in Vienna. From January to April 2016
Johan conducted some entrepreneurship in the Czech Republic. What tax residence does he have
and how his incomes received from entrepreneurship in the Czech Republic should be treated from
the tax perspective?
Example 2.
Josef is Czech entrepreneur (his business is buying and selling of goods). In November 2016 he sold
to a local pub two boxes of vegetables. For this supply Josef did not receive any consideration
except possibility to arrange a Christmas party for his employees at that pub for free. Josef and the
owner of the pub arranged mutual offset of trade receivable and trade payable. How this supply of
vegetables should be treated from the tax perspective?
Example 3.
In May 2014 Jakub purchased a new flat for CZK 1,750,000 where since that time and till the end of
2015 he had his residential address. In January 2016 he decided to buy an older house and he sold
his flat for 2,000,000 CZK. For buying a house Jakub used 1 500 000 CZK from the money he
received for sale of his flat. How will be the revenue from the sale of flat treated from the tax
perspective if this flat was sold in January 2016?
Example 4.
On April 14, 2015 Veronika bought a car for 158 000 CZK (for personal use) and sold it on February
20, 2016 at a price of CZK 100 000. How will the revenue from the sale of car be treated from the
tax perspective?
Example 5.
Vladimir is entrepreneur since 2013 with the following results:
 2013 - loss from independent activities in amount of 290 000 CZK
 2014 - profit from independent activities in amount of 170,000 CZK (loss from the 2013 was
claimed in amount of 50 000 CZK)
Till when (which year) the latest can Mr. Novak claim the remaining part of the loss from 2013?
Example 6.
Petr is entrepreneur. He has two accounts in the Czech Savings Bank (Ceska spořitelna): (1) current
business account; and (2) private savings account. Business account was credited by the bank with
interest in amount of CZK 1,500 and private savings account was credited by the bank with interest
in the amount of CZK 900. Which interest – from business account or private account or both –
should be reported by Petr in his annual tax return?
Example 7.
Marketa prepares her fiend’s son for university entrance tests from mathematics. For this work her
friend paid her 5,000 CZK. How should this income of Markets be treated from tax perspective?
Example 8
Pavel lives with Katerina but they are not married. They live in a common household with
Katerina’s child from her previous marriage, Lukas, and with the couple’s own common child,
Frantisek. Frantisek attends a kindergarten. In 2016, the annual expenses paid to the kindergarten
amounted to CZK 9,000. Katerina does not work but received a CZK 70,000 parent subsidy in 2016.
What is the total amount of tax credits which Pavel can claim in 2016?
Example 9
In 2015, Juraj had the following income:
 employment income of CZK 420,000;
 occasional income from independent services of CZK 111,000, for which he uses lump sum
expenses of 60%;
 CZK 12,000 from a contract on work done paid in June 2015
What are the amounts of social security insurance and health care insurance premiums which will
be paid by Juraj on his employment and social security premiums paid from business activity?