Dear Prague Expats,
We have types of EU clients who don’t need to have a Czech visa or other nationalities who should have a visa and renew. However, ALL trade license holders should declare/apply Czech annual tax report for the past year. We are going to explain why your annual tax report may cost so much and how to avoid it this tax year.
Information for all trade license holders: Recording the transactions is one of the major parts of the annual tax report! The accounting service fees will depend on your payment transactions; Recording each transaction on bookkeeping software or downloading your bank transactions.
Whether you withdraw cash from ATMs, buy clothes online, pay for food or Uber Czech Republic charges you from your card for your trip, charges the Netflix or you use payment card anywhere. So accountants charge for recording each transaction. And recording each transaction costs between 20 -35 CZK in Prague. So, if you are using your personal bank account as a business you may have thousands of transactions for the previous year.
Our Prague Expats tip: Arrange a second bank account solely for business purposes. Where you accept payments for your invoices, pay social taxes and health insurance and finally transfer your salary to your personal bank account. Most of the banks are offering bank accounts without any services fee. Alternatively, you can have another bank account at Fio Bank, Air Bank, Equa bank, Mbank without any service fee and save thousands of CZK for accounting services.
The year 2019 is already started and we have new clients for the business visa under trade license renewals. And as income proof for Czech residence renewal, the MOI-Czech immigration offices will require their annual tax reports for 2018. We have even identified one of our clients to hit the records jackpot and the winner of the year with 9000 payment card transactions in 2018! We hope, her accountant will negotiate with her and she gets some discount 🙂