Solidary increase of tax

What is solidary increase of tax; who is liable to this tax and what are necessary steps

What is solidary increase of tax?

Additional taxation of high-income employees.

Who is liable to solidarity tax?

All the employees whose income overcomes the cap for social security insurance during a calendar year.

 

The cap is calculated as a 48-multiple of an average salary that is stated in a regulation issued by the Czech Ministry of labour and social affairs. For the year 2013 the average salary is CZK 25.884. In general, the solidarity tax liability affects all employees whose gross income in any month in 2013 exceeds the amount of CZK 103.536.

What is the percentage of solidarity tax?

The solidarity tax amounts to 7% and it is calculated from the difference between the sum of incomes which is included in a partial tax base from income from employment and a partial tax base from business income and 48 times the average salary for the purposes of social security (i.e., CZK 1.242.432). Employees with monthly incomes of above CZK 103.536 will pay extra 7% of the income which exceeds this amount.

 

Incomes from renting out property or incomes on capital gains are not affected.

Consequences on levy of solidarity tax

Tax payers affected by the solidarity tax will have to file a separate personal income tax return as of 2013. The tax return will have to be submitted by the authorities by March 31, 2014. Solidarity tax would be applied only for years 2013-2015.

How can we help you further

Have your tax return prepared by tax specialist from Pro Factum.

Made by AG25 s.r.o., 2013
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