Name: OpenAccountants MCP Server
Author: OpenAccountants

Section 1 -- Quick reference

Quick reference table

Field	Value
Country	Czech Republic (Česká republika)
Tax type	Daň z příjmů fyzických osob (DPFO -- personal income tax)
Primary legislation	Zákon č. 586/1992 Sb., o daních z příjmů
Supporting legislation	Zákon č. 589/1992 Sb. (social insurance); Zákon č. 592/1992 Sb. (health insurance); Zákon č. 540/2020 Sb. (paušální daň)
Tax authority	Finanční správa (Financial Administration)
Filing portal	EPO / Daňový portál
Currency	CZK only
Tax rates	15% up to CZK 1,676,052; 23% above
Basic taxpayer credit	CZK 30,840/year (na poplatníka)
Expense lump-sums	80%/60%/40%/30% depending on activity
Paušální daň	CZK 7,498--27,139/month (all-in)
Filing deadline (paper)	1 April
Filing deadline (electronic)	1 May
Filing deadline (via daňový poradce)	1 July
Contributor	Open Accountants Community
Validated by	Pending -- requires Czech daňový poradce sign-off
Validation date	Pending

Read this whole section before classifying anything.

Expense methods at a glance

Activity	Lump-sum %	Cap (CZK)
Agriculture, craft trades (řemeslné živnosti)	80%	1,600,000
Other trades (živnostenské podnikání)	60%	1,200,000
Professional services (§ 7/1c, 7/2)	40%	800,000
Rental of business property (§ 9)	30%	600,000

Tax credits (slevy na dani, § 35ba) (§ 35ba)

Credit	Annual CZK
Basic taxpayer (na poplatníka)	30,840
Spouse (caring for child under 3)	24,840
Disability I/II	2,520
Disability III	5,040
ZTP/P holder	16,140
Student	4,020
1st child	15,204
2nd child	22,320
3rd+ child	27,840

Conservative defaults

Ambiguity	Default
Unknown expense method	STOP -- must determine before computing
Unknown expense category	Not deductible
Unknown business-use proportion	0% business use
Unknown activity type for lump-sum	STOP -- rate depends on activity

Section 2 -- Required inputs and refusal catalogue

Required inputs

Minimum viable — bank statement for the tax year. Acceptable from: ČSOB, Komerční banka, Fio banka, Česká spořitelna, Raiffeisenbank, MONETA Money Bank, or fintech (Revolut, Wise).
Recommended — sales invoices, purchase invoices (if real expenses), expense method choice, živnostenský list (trade licence).
Ideal — complete daňová evidence or accounting records, prior year DPFO, Přehled ČSSZ/VZP.

Refusal catalogue

R-CZ-1 -- s.r.o. or a.s. — This skill covers OSVČ only. s.r.o. files corporate income tax. Please use a separate skill. (Trigger: client operates through a legal entity.)
R-CZ-2 -- International income / tax treaties — International income is outside scope. Consult a daňový poradce. (Trigger: significant foreign income.)
R-CZ-3 -- Crypto taxation — Crypto classification is evolving. Escalate to daňový poradce. (Trigger: significant crypto trading.)
R-CZ-4 -- Expense method unknown — I cannot compute without knowing your expense method. Please confirm. (Trigger: client has not confirmed real/lump-sum/paušální.)

Section 3 -- Transaction pattern library (the lookup table)

3.1 Czech banks (fees and interest)

Czech banks (fees and interest)

Pattern	Treatment	Notes
ČSOB, ČESKOSLOVENSKÁ OBCHODNÍ BANKA	Bank charges: deductible (if real expenses)	Monthly fees
KOMERČNÍ BANKA, KB	Bank charges: deductible	Same
FIO BANKA, FIO	Bank charges: deductible	Same
ČESKÁ SPOŘITELNA, ČS	Bank charges: deductible	Same
RAIFFEISENBANK	Bank charges: deductible	Same
MONETA MONEY BANK	Bank charges: deductible	Same
REVOLUT, WISE (fees)	Deductible	Fintech fees
ÚROK, INTEREST (credit)	EXCLUDE from § 7	Interest = § 8 capital income
ÚROK, INTEREST (debit)	Deductible if business loan	Personal: EXCLUDE
SPLÁTKA ÚVĚRU (loan repayment)	EXCLUDE	Principal movement

3.2 Czech government and statutory bodies

Czech government and statutory bodies

Pattern	Treatment	Notes
FINANČNÍ ÚŘAD, FÚ	EXCLUDE	Tax payment
ČSSZ (social insurance)	NOT deductible from income tax base	Social insurance ≠ income deduction
VZP, OBOROVÁ ZP, ZPMV (health insurance)	NOT deductible from income tax base	Health insurance ≠ income deduction
ŽIVNOSTENSKÝ ÚŘAD	Deductible	Trade licence fees
Czech POINT	Deductible	Administrative fees

3.3 Czech utilities and telecoms

Czech utilities and telecoms

Pattern	Treatment	Notes
ČEZ, E.ON, PRE	Deductible if business premises	Electricity; apportion if home
INNOGY, PRAŽSKÁ PLYNÁRENSKÁ	Deductible if business premises	Gas
T-MOBILE CZ, O2, VODAFONE CZ	Deductible: business phone/internet	Mixed: apportion
UPC, UNET	Deductible: business internet	Mixed: apportion

3.4 SaaS and software -- international

SaaS and software -- international

Pattern	Billing entity	Treatment	Notes
GOOGLE, MICROSOFT, ADOBE, META	IE/LU entities	Deductible expense	Reverse charge DPH
GITHUB, OPENAI, ANTHROPIC	US entities	Deductible expense	Non-EU
SLACK, ZOOM, ATLASSIAN	Various	Deductible expense	Check entity

3.5 Professional services (Czech)

Professional services (Czech)

Pattern	Treatment	Notes
ÚČETNÍ, ÚČETNICTVÍ	Deductible	Accounting fees
ADVOKÁT, PRÁVNÍK	Deductible if business	Legal fees
DAŇOVÝ PORADCE	Deductible	Tax advisory
NOTÁŘ	Deductible if business	Notary fees

3.6 Transport and travel

Transport and travel

Pattern	Treatment	Notes
ČESKÉ DRÁHY, ČD	Deductible if business travel	Train
REGIOJET, LEO EXPRESS	Deductible if business travel	Private rail
LÍTAČKA, DPP (Prague transport)	Deductible if business travel	Public transport
MOL, BENZINA, OMV, SHELL CZ	Deductible: business portion only	Fuel
LETADLO, RYANAIR, WIZZAIR	Deductible if business travel	Flights

3.7 Office and supplies

Office and supplies

Pattern	Treatment	Notes
ALZA.CZ, CZC.CZ, DATART	Capital if significant; else expense	IT equipment
IKEA CZ, HORNBACH	Capital or expense depending on value	Office items
ČESKÁ POŠTA	Deductible	Postage

3.8 Food and entertainment

Food and entertainment

Pattern	Treatment	Notes
ALBERT, TESCO, KAUFLAND, LIDL CZ, BILLA	Default: NOT deductible	Personal provisioning
RESTAURACE (any restaurant)	Deductible if documented business purpose	Document attendees and purpose

3.9 Internal transfers and exclusions

Internal transfers and exclusions

Pattern	Treatment	Notes
VLASTNÍ PŘEVOD, OWN TRANSFER	EXCLUDE	Internal movement
VÝBĚR, ATM	EXCLUDE (default: drawings)	Ask what cash used for
VKLAD	EXCLUDE	Owner deposit

Section 4 -- Worked examples

Example 1 -- IT freelancer, 40% lump-sum

Input: Revenue CZK 1,200,000, 40% lump-sum (professional services), single. Computation: Lump-sum = CZK 480,000. Tax base = CZK 720,000. Tax at 15% = CZK 108,000. Less basic credit CZK 30,840. Final tax = CZK 77,160.

Example 2 -- Paušální daň eligibility

Input: Revenue CZK 900,000, not VAT registered, no employees, no partnership. Result: Eligible for Band 1. Monthly payment CZK 7,498. Annual = CZK 89,976. No DPFO filing.

Example 3 -- Lump-sum cap hit

Input: IT freelancer (40%), revenue CZK 2,500,000. Real expenses CZK 1,100,000. Lump-sum: 40% = CZK 1,000,000, capped at CZK 800,000. Tax base = CZK 1,700,000. Real expenses: CZK 1,100,000. Tax base = CZK 1,400,000. Conclusion: Real expenses save CZK 300,000 in tax base. Recommend real expenses.

Example 4 -- Parent with tax bonus

Input: Single parent, revenue CZK 400,000, 40% lump-sum, 3 children. Computation: Tax base = CZK 240,000. Tax = CZK 36,000. Less basic CZK 30,840 = CZK 5,160. Less child credits CZK 65,364. Tax bonus (refund) = CZK 60,204 (capped at CZK 60,300).

Section 5 -- Tier 1 rules (deterministic)

5.1 Tax rates

Tax rates — 15% on first CZK 1,676,052 of tax base. 23% above. No tax-free band -- zero tax achieved through basic credit. (§ 16)

5.2 Expense lump-sums

Expense lump-sums rules — Cannot combine lump-sum and real expenses for the same activity. Lump-sum users need not keep expense receipts but MUST keep income records. (§ 7 odst. 7)

5.3 Paušální daň

Paušální daň eligibility and rules — Single monthly payment (tax + social + health). Eligibility: revenue up to CZK 2,000,000, not VAT payer, no employees, no partnership, main activity. Registration by 10 January. No DPFO filing. (Zákon č. 540/2020 Sb.)

5.4 Social and health insurance

Social and health insurance — Assessment base = 50% of § 7 partial tax base. Social: 29.2%. Health: 13.5%. NOT deductible from income tax base. (Zákon č. 589/1992, 592/1992)

5.5 Loss carry-forward

Loss carry-forward — 5 years. Only available with real expenses -- not lump-sum. (§ 34)

5.6 Non-taxable deductions (§ 15)

Non-taxable deductions — Mortgage interest (max CZK 150,000), pension contributions (max CZK 24,000), life insurance (max CZK 24,000), charity (min CZK 1,000 or 2% of base, max 15%). (§ 15)

Section 6 -- Tier 2 catalogue

6.1 Choosing real vs lump-sum expenses

Choosing real vs lump-sum expenses — Why: Depends on actual expense level vs lump-sum cap. Default: Present both computations. Question: "What are your total documented business expenses?"

6.2 Switching expense methods (transition adjustment)

Switching expense methods (transition adjustment) — Why: Receivables/payables must be adjusted. Default: Flag for reviewer. Question: "Did you switch from lump-sum to real expenses (or vice versa) this year?"

6.3 Spouse credit eligibility

Spouse credit eligibility — Why: Since 2025, only when caring for child under 3. Default: Do not apply without confirmation. Question: "Do you care for a child under 3?"

6.4 VAT registration forcing paušální exit

VAT registration forcing paušální exit — Why: VAT registration terminates paušální daň. Default: If VAT-registered, paušální invalid. Question: "Are you VAT registered or approaching the CZK 2,000,000 threshold?"

Section 7 -- Excel working paper template

Sheet "Transactions"

Columns: Date, Counterparty, Description, Amount (CZK), Category (Revenue/Expense/Depreciation/EXCLUDE), Deductible amount, Default?, Question, Notes.

Sheet "Tax Computation"

Step-by-step per Section 5, branching by expense method.

Section 8 -- Bank statement reading guide

CSV formats. ČSOB uses semicolons with DD.MM.YYYY. Komerční banka uses CSV with various delimiters. Fio banka offers clean CSV with YYYY-MM-DD. Common columns: Datum (Date), Protiúčet (Counterparty), Částka (Amount), Poznámka (Note).

Czech language variants. Common: příjem (income), výdaj (expense), poplatek (fee), úrok (interest), převod (transfer), vklad (deposit), výběr (withdrawal).

Insurance payments — ČSSZ (social) and health insurance payments are separate from income tax. They are NOT deductible from the income tax base (unlike Poland).

Section 9 -- Onboarding fallback

9.1 Entity type

Entity type — Inference: OSVČ from bank account type. Fallback: "Are you OSVČ or operating through an s.r.o.?"

9.2 Expense method

Expense method — Inference: Not inferable. Always ask. Fallback: "Real expenses, lump-sum, or paušální daň?"

9.3 Activity type

Activity type — Inference: From counterparty mix. Fallback: "What is your živnost type? Řemeslná, volná, or professional?"

9.4 VAT status

VAT status — Inference: DPH payments in statement. Fallback: "Are you a DPH payer?"

9.5 Family status

Family status — Inference: Not inferable. Fallback: "Married? Children? (Affects credits.)"

Section 10 -- Reference material

Test suite

Test 1 -- IT freelancer, lump-sum. Revenue CZK 1,200,000, 40%, single. Tax = CZK 77,160. Test 2 -- Craftsman near cap. Revenue CZK 2,200,000, 80%, cap CZK 1,600,000. Tax = CZK 59,160. Test 3 -- High earner, 23% band. Revenue CZK 4,000,000, real expenses CZK 1,500,000. Tax = CZK 410,076. Test 4 -- Paušální daň. Revenue CZK 900,000. Band 1, CZK 89,976/year. Test 5 -- Tax bonus. Parent, 3 children, CZK 400,000 revenue, 40% lump-sum. Bonus CZK 60,204.

Edge case registry

EC1 -- Lump-sum cap exceeded. Apply cap, not computed percentage. EC2 -- Paušální daň revenue exceeded. Band shift or full exit. EC3 -- VAT forces paušální exit. Must file standard DPFO. EC4 -- Employment + freelance combined. Both partial bases on one return. EC5 -- Student + parent credits. Both claimable (separate credits). EC6 -- Expense method switch. Transition adjustment mandatory. EC7 -- Losses with lump-sum. Cannot carry forward losses under lump-sum. EC8 -- Health insurance minimum. Must pay minimum even if below threshold.

Prohibitions

NEVER compute without determining expense method
NEVER exceed lump-sum caps
NEVER file DPFO for valid paušální daň taxpayer
NEVER apply basic credit more than once
NEVER allow both parents to claim same child credit
NEVER treat social/health insurance as income tax deductible
NEVER carry forward losses under lump-sum expenses
NEVER advise on crypto, international structures, or tax treaties
NEVER present calculations as definitive
NEVER skip transition adjustment when switching expense methods

Sources

Zákon č. 586/1992 Sb. (Income Tax Act)
Zákon č. 540/2020 Sb. (Paušální daň)
Zákon č. 589/1992 Sb. (Social insurance)
Zákon č. 592/1992 Sb. (Health insurance)
Finanční správa -- https://www.financnisprava.cz

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a daňový poradce or equivalent licensed practitioner in the Czech Republic) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com.

Talk to a verified accountant

This skill is a tool, not an engagement. Every taxpayer's situation is different, and the rules in the skill may not match your specific facts.

To speak with one of the licensed accountants who verifies skills for your jurisdiction — no liability on either side until you and the accountant sign a formal engagement letter — book a free 30-minute call:

→ Book a call

We'll route you to the named verifier covering your country or state. You can also see the full list of verified accountants at openaccountants.com/network.

Key figures — Czech Republic, 2025

The full Guide