Náklady, brokeři a praxe
Broker Tax Report: How to Use It for Your Tax Return
Key takeaways
- A broker's tax report is a tool — it does not replace your own responsibility for filing a correct tax return.
- In the Czech Republic, a 15% tax applies to dividends and short-term gains from selling securities.
- Three-year holding period test: securities held longer are exempt from tax if legal conditions are met.
- Not every broker provides a report formatted to suit Czech tax rules.
- This article does not constitute tax advice — consult a tax professional.
A broker's tax report is a summary of realized gains, losses, and dividends for the calendar year — it serves as supporting material for your tax return, but its accuracy and format vary by broker.
What the report typically contains
- Realized gains and losses — from positions closed during the year, including cost basis and transaction dates.
- Dividends — payments received, possibly including foreign withholding taxes deducted at source.
- Interest — if the broker pays interest on cash balances.
- Fees — an overview of commissions paid (potentially a deductible expense).
Czech tax rules in brief
In the Czech Republic, individuals pay 15% income tax on dividends and realized gains from the sale of securities. There are two key exemptions:
- Holding period test: securities held continuously for more than 3 years are exempt from tax (subject to conditions under Section 4 of the Income Tax Act).
- Value threshold: if income from securities sales for the year does not exceed the statutory limit, it is exempt regardless of holding period (the threshold may change — always verify the current legislation).
A more detailed overview is available in the article ETF taxes in the Czech Republic.
How to use the report
Download the report for the previous year (usually available January–February). Check:
- Whether the report includes acquisition dates — these are essential for assessing the holding period test.
- Whether dividends are shown gross or net (after foreign withholding tax).
- Whether amounts are correctly converted to CZK — the broker calculates in the account currency, but you file in Czech crowns.
Limitations of the report
The broker compiles the report according to its own jurisdiction's law, not Czech tax law. Formats differ — one broker provides a clear PDF, another only a CSV. Foreign withholding taxes must be accounted for under double taxation treaty provisions. This is a complex area — do not treat the report as a ready-made tax return.
FAQ
Do I need to file a tax return as an investor in the Czech Republic?
It depends on the level and type of income. If your capital income (dividends, sales) exceeds the statutory threshold, or if a foreign broker does not withhold tax at source, you must file a return. Verify the current rules or consult a tax professional.
What is withholding tax on dividends?
Tax deducted in the country where the fund or company is domiciled before the dividend reaches your account. ETFs with Irish domicile benefit from reduced withholding tax thanks to tax treaties. For more, see the article on the Irish domicile of UCITS funds.
How do I convert dividends to Czech crowns for my tax return?
Use the CNB exchange rate on the day the dividend was received. The broker states amounts in the account currency, but you file your tax return in CZK. CNB exchange rates are available on the central bank's website.
Can I offset losses from selling ETFs?
Yes, in the Czech Republic losses from the sale of securities can be offset against taxable gains in the same income category in the same tax year. Consult a tax professional for the specific rules — this article does not constitute tax advice.