Salary calculator czech republic

Spreadsheet calculator- click on imagine below to access the file

Brno location

http://www.propertysecrets.net/article/brno_czech_republics_knockout_location/228.html

Income tax czech pink papers (with translation also)

http://cds.mfcr.cz/cps/rde/xchg/SID-3EA9846B-482B55A1/cds/xsl/4292.html?year=

Instructions for filling out the income tax paper

A little bit too late, I admit… 

http://cds.mfcr.cz/sys/cds/scripts/tiskopisy/tiskopisy-pdf2008/5405-1a_15.pdf 

Pink paper Income tax translation guide

http://portal.gov.cz/wps/uploader-download.jsp?file=MF/5405-AJ_13.pdf

Income tax in CZ starting 01/2008

http://www.propertysecrets.net/blogs/finance_watch/czech_property_investment_tax_reform_in_the_czech_republic/post-148.html

Salary taxation 2008

A single (flat) individual income tax rate of 15% is introduced since 1 January 2008. From 2009 the tax rate will be further reduced to 12.5%. The tax base of an employee includes the employee’s gross salary, as well as the health and social insurance contributions payable by the employer (35% of gross salary). The employee’s contributions (12.5% of gross salary) are no longer reducing the tax base. In essence, the effective rate will be approximately 23% of the 2007 tax base applicable to an employee’s income.

Source: http://www.kdpcr.cz/Data/files/pdf/ibdf.pdf

Example:

 Gross salary in one month (basic salary+all possible bonuses) = 18000 czk

Employer’s contributions = 35% * 18000 czk = 6300 czk

Tax base = Employee’s gross salary+Employer’s contributions=18000 czk +6300 czk = 24300 czk

Income tax (15%* tax base)= 15% * 24300 czk = 3645 czk

Base for social charges 12.5% = Employee’s gross salary = 18000 czk 

Employee’s social charges, deducted from salary 12.5% = 12.5% *18000 czk = 2250 czk

Netto salary= Gross salary-Social charges-Income tax+Tax bonus

Tax bonus= 2070 czk

Netto salary= 18000 -2250-3645 +2070=14175 czk

 

 

 

Income tax bonus 2008 of 2070 czk

http://www.expats.cz/prague/article/money/new-income-tax-calculations-for-2008/

http://www.praguepost.com/articles/2008/01/30/foreigners-panic-over-changes-in-tax-law.php

Most  important (source: articles above): claiming monthly tax relief of 2,070 CZK as a non Czech tax resident would be repealed; all employees are now to be treated as Czech tax residents.

DENTISTS- Brno, Czech Republic

http://www.firmy.cz/Prvni-pomoc-a-zdravotnictvi/Zdravotnicke-sluzby/Zdravotnicka-zarizeni/Lekarske-ordinace/Stomatologicke-ordinace/reg/brno-mesto

List of DOCTORS in Brno

http://www.firmy.cz/Prvni-pomoc-a-zdravotnictvi/Zdravotnicke-sluzby/Zdravotnicka-zarizeni/Lekarske-ordinace/Prakticti-lekari/reg/brno-mesto?page=7

Real Estate tax

http://www.czech.cz/en/economy-business-science/investment-counsel/tax-system/real-estate-tax/

http://prague.tv/articles/realestate/property-taxes-in-the-czech-republic

Road tax

http://www.czech.cz/en/economy-business-science/investment-counsel/tax-system/road-tax/

http://www.shell.com/home/content/euroshell-global-en/crt/existing_customers/existing_customers_czech_roadtax.html

http://www.shell.com/home/content/euroshell_crt_uk/our_services/road_services/es_czech_road_taxes_news_2311.html

Schengen visa requirements

http://www.immihelp.com/visas/schengenvisa/requirements-exemptions.html

Act No. 326/1999 Coll., on Residence of Foreigners in CZ

http://www.czechembassy.org/wwwo/default.asp?id=30856&ido=801&idj=2&amb=25&ParentIDO=516

Working permit and Visa

http://209.85.135.104/search?q=cache:wD_TqjaUYasJ:www.helcom.cz/download/integrace/working.doc+326/1999+Czech&hl=en&ct=clnk&cd=17

Foreign Employment Matters

http://portal.mpsv.cz/sz/zahr_zam

Standard of Living (statistics)

http://www.mpsv.cz/files/clanky/4466/basic_indicators_1993-2006.pdf

Income Taxes Act Amendment and Amendment to Other Legislation

http://www.deloitte.com/dtt/alert/0,1001,cid%253D168493,00.html

Income tax 2008

Source: http://www.bavaria-cee.com/RO/news/press.html?mode=detail&News_ID=1113

(information written in german)

Czech Labor Code Change

The Czech government is preparing a reform of the labor market that should make firing and hiring staff easier for employers, according to Prime Minister Mirek Topolánek.    The reform should also simplify employment of foreigners, who would receive “green cards” that will grant them short-term stay and work permits. But if they lose their job, they will have to find a new one or leave the Czech Republic. The government is looking for inspiration to Denmark, where it is possible to dismiss staff at an hour’s notice without giving reason and where jobless people receive unemployment benefits only if they study.

Source:

Deducted taxes from Salary in CZ

The following taxes are deducted from gross salary:

- 12.5% :social security and health contribution (details here )

- 12%-32% income tax (details here)

Gross salary – it’s usually the salary written in work contract. (plus any kind of salary bonuses, if it’s the case)

Netto salary – salary after tax deduction; money in hand.

Social security and health contributions

An employee’s social security and health contributions are calculated as 12.5% of the gross salary. All local employers must pay an additional 35% of all employees′ gross salaries to the Czech social security and health insurance authorities.

Major changes came into effect on 1 January 2004 which would generally also require any foreign national working in the Czech Republic directly for a Czech company or an employer headquartered in a country with which the Czech Republic has concluded a social security agreement to pay the Czech mandatory health insurance and social security contributions. In these cases, employer contributions would also be required. Upon the accession of the Czech Republic to the EU in May 2004, any EU national working in the Czech Republic and their employer would also generally be required to pay the Czech social security and health insurance contributions unless otherwise exempt according to EU regulations.

Contributions	Employer (%)	Employee (%)
Health care insurance	9.0	4.5
Pensions	19.5	6.5
Unemployment	3.2	0.4
Sickness and other benefits	3.3	1.1
Total	35.0	12.5

Other income derived from a source in the Czech Republic is taxed through a personal tax return that should be filed with the relevant Tax Authority within 3 months after the end of the tax period (a 3-month extension may be granted if the tax return is prepared by a qualified tax adviser).

Source:

Expatriates employed directly by a Czech Entity

If expatriates are employed by a Czech entity, they would enter into an employment contract directly with the Czech entity. This means the Czech employer is obliged to deduct all tax, social and health insurance contributions in the same way as for Czech staff. This liability arises from the first day of employment.

In addition, we would draw to your attention the following:

• Need to apply for work permits (only applies to non-EU nationals).
• Need to apply for residency permits. (In the case of EU nationals, they are entitled but not obliged to apply for a residence permit, but must only prove the purpose of stay, for example employment contract, or contract showing appointment as a director of a company ‘jednatel’ in Czech).
• Need to notify local Labour Office about their employment (also EU nationals).
• If the foreign staff have other taxable income, there might be a need to prepare year-end personal tax returns if they spend more than 183 days in the Czech Republic or are habitually domiciled here.
• Certain benefits provided by the Czech company such as accommodation, meal allowances during business travel exceeding statutory limits, school fees for children etc. would not be allowable for Czech tax purposes

Source:

Salary calculation CZ

(Note on November 23th, 2007 : calculation below is valid till 31.12.2007. Starting January 1st, 2008 there is  a new income tax. For an aproximative estimation, you may consider calculation below with an error between [-5, +5] euro netto. )

Gross salary =  salary according to work contract + any salary bonuses, if the case

Taxes deducted/ retained from  gross salary = Health insurance+ social charges+ tax income

Netto salary (money in hand) = Gross salary – Taxes deducted.

Below is a table regarding aproximative salary calculation. For euro conversion, I estimated 1 EUR= 28 czk.

You can also check  these czeck links for salary calculation: 

http://www.penize.cz/nastroje/kalk/dane_zam_rodinna_2007.asp

http://www.finance.cz/dane-a-mzda/financni-kalkulacky/mzda-po-reformach/

http://www.clanbrandon.co.uk/dane.php?net=22000&rebate1=600&kids=0&depspouse=350£rate=39.5586&eurorate=27.4941&dollarrate=19.8398&Submit=Submit

TAX and Social Insurance reform in CZ- starting 2008

http://www.leitner-leitner.com/en/_ASSETS/ll_Czech_Tax_News_3_eng_1176824965.pdf

Czech missions ABROAD

You may find all CZ Embassies and consulates listed here:

—

Missions Abroad

Missions of the Czech Republic Abroad A list and a brief description of the functions of the Czech Republic missions and offices abroad. Permanent Missions and Delegations of the Czech Republic Permanent Missions and Delegations of the Czech Republic to foreign international organisations (NATO,WEU,UN,OECD….) Diplomatic list Contacts, addresses, names of diplomats – a complete list of all foreign missions to the Czech Republic Regularily updated. In case you need any complementary information, please call the Diplomatic Protocol tel: ++420 – 22418 2190 Websites of Czech Embassies Abroad Addresses of the websites of individual embassies, permanent missions and consulates of the Czech Republic in 88 countries. Websites of Czech Centres Abroad

Renting a flat in CZ

About renting, contract lease,  connected fees, please check out this link:

http://aa.ecn.cz/img_upload/d5113ff636cd588fdf5da86513c81811/Bydleni_v_najmu.pdf

Note: only few czechs look for a rented apartment on the free market, because this type of accomodation is very expensive for them. Czechs usually pay a symbolic fee to the Czech government as a rent. 

Czech Labour Code

“I didn’t know the law” is no excuse for anybody.

Kindly please find below the Bible of your rights and duties as an employee in Czech Republic:

http://www.mpsv.cz/files/clanky/3221/labour_code.pdf

Source.

Income tax in Czech Republic

The czech income tax rates for individual’s income are progressive. In other words, the higher your income, the higher the rate of tax that you will pay. Tax on the income of individuals is payable at rates of 12% – 32%. There are reduced tax rates for certain income earners.

An individual pays tax on his income as a wage earner or as a self-employed person. A foreign resident who is employed in the Czech Republic pays tax only on income earned in the Republic. An employer is bound to deduct, immediately on a monthly basis, the requisite tax from employees salaries.

Czech Republic Individual income tax rates 2007

Tax base (CK)	Tax
0 – 121,200	12%
121,201- 218,400	19% of base exceeding 121,200 CK
218,401 – 331,200	25% of base exceeding 218,400 CK
331,201 and over	32% of base exceeding 331,200 CK.

Source.

COMMMETS: Tax base- it’s anual income. You should multiply with 12 your monthly income in order to see  %tax.

Average salary in Czech Republic

In the year 1989, the average gross wage of Czech employees was CSK 3,170. In 2005, the average was nearly CZK 19,000. In 2010, when the country is expected to accept the euro, the average salary should be around CZK 25,000.

The statistical results from September 2005 show that the average wage in the country is CZK 18,833. In comparison to the year 2004, after the influence of inflation, the average wage grew 4.2%.

The average wage in the commercial sector is currently nearly the same as that of the state sector, which had the quickest growth during the year. Employees of private companies earn on average CZK 18,930 per month; state employees average CZK 18,497.

Detailed statistics show that two-thirds of employees don’t reach the average wage.

Employees in the technical fields and financial mediation have the highest wages. On the other hand, workers in the agriculture and textile industries have the lowest.

Source

COMMENTS:

19000 czk average salary is gross salary, before taxes. It is said that the real average salary in CZ is somewhere around 14-15000 czk gross salary. The reason is that statistics take into account salaries in Prague, the capital city of CZ; in Prague salary ranges are 10%-15% higher than in the rest of the country. Also, one should keep on mind what statistics show: two-thirds of employees don’t reach the average wage.

Job offer in Brno, CZ

When job offered abroad, in order to take the right decision about accepting it or not, you should be aware of:

- costs living

- salary ranges

- salary calculation

- details about work contract