Do you employ Ukrainian nationals? Pay attention to the correct application of tax allowances!

In connection with the conflict in Ukraine, a number of people who are interested in availing of the demand of Czech employers for the workforce are pouring into the Czech Republic. However, we recommend considerable caution when it comes to tax and levy duties, as some tax reliefs cannot be used for everyone.

In order to apply tax allowances, it is necessary to determine whether the employee is a Czech tax resident or not. As for Ukrainian nationals, it will usually be more likely a case of tax non-resident. In the case of tax non-residents, it is possible to apply only the basic tax relief per the taxpayer and the allowance for the student within the monthly wage settlement. However, if a Ukrainian national intends to move to the Czech Republic and gain permanent residence here, together with his or her family, the appraisal would probably be different.

Related information can also be found on the website of the Financial Administration of the Czech Republic.

publikováno 19.04.2022