Tax deductibility of tests for COVID-19 (No. 933)

Many employers and self-employed persons (sole proprietors) have passed through the COVID-19 tests. According to the Information of the Financial Administration of the Czech Republic, the costs of the COVID-19 test are tax deductible expenses in case the test accomplishment is necessary (mandatory)  to do a job of work. As far as the employees are concerned, it is a benefit that is not subject to natural person income tax; that practically means that this benefit will not be taxed for employees. It is a case of mandatory test if a competent health protection authority (e.g. the Ministry of Health or Hygiene station) orders it.

Should the employer or self-employed person decide to carry out the COVID-19 tests voluntarily (of their own free will), the associated expenses will be a non-deductible expense. On the part of employees, such income will be exempt from tax, on condition that the test is performed by a medical facility registered in the National Register of Health Service Providers.

publikováno 14.07.2020